Glossary of Selected Financial Terms

al Arrangement Date 
Original Arrangement Date is the date when the IMF’s Executive Board approves the 
arrangement. 
Original Disbursement Date 
Original Disbursement Date is the date when the funds were disbursed to the member. 
Overdue Interest 
Overdue Interest on PRGT loans. 
P 
Precautionary and Liquidity Line (PLL) 
Established to meet actual or potential balance of payments needs of members with sound 
economic fundamentals and institutional policy frameworks but with some remaining 
vulnerabilities that preclude them from using the FCL. Access under a PLL arrangement varies 
depending on the duration of the arrangement, ranging from six months to two years, and 
member-specific needs. Under a six-month arrangement, access could be up to 250 percent of a 
member’s quota, with a possibility to be augmented to a maximum of 500 percent in exceptional 
 circumstances. For one to two year arrangements, the maximum access is equal to 500 percent of 
a member’s quota for the first year and up to 1000 percent of quota for the second year. 
PRG Trust 
The Poverty Reduction Growth Trust (PRGT) had been originally established as the ESAF Trust in 
1987 to provide concessional assistance to low-income members and was subsequently enlarged 
and renamed. PRGT was previously known as ESAF (1987-1999), PRGF (1999-2006), PRGF-ESF 
(2006-2010) Trusts. The PRGT provides financial assistance under three facilities: the Extended 
Credit Facility (ECF) to address protracted balance of payments (BOP) needs, the Standby Credit 
Facility (SCF) to address short-term and precautionary BOP needs, and the Rapid Credit Facility 
(RCF) to provide rapid low access with limited conditionality to meet urgent BOP needs. 
PRGT Arrangements 
The Poverty Reduction Growth Trust (PRGT) Arrangements represent lending programs 
providing concessional financing support to low-income countries. 
PRGT Credit Outstanding 
The Poverty Reduction and Growth Trust (PRGT) Credit Outstanding represents total PRGT 
resources disbursed, including outstanding Trust Fund and Structural Adjustment Facility (SAF) 
loans, less repayments. 
PRGT Disbursements 
PRGT Disbursements are concessional loans disbursed to members under the Poverty 
Reduction and Growth Trust (PRGT). 
PRGT Interest 
The PRGT Interest is payable by a member on its outstanding concessional loans semiannually. 
PRGT Repayments 
Principal repayments of concessional loans disbursed by the Poverty Reduction and Growth 
Trust (PRGT). 
Q 
Quota 
Each member of the IMF is assigned a quota, denominated in SDRs, that is based broadly on the 
country’s economic position relative to other members. The size of a country’s quota takes into 
account its GDP, current account transactions, and official reserves. Quotas determine 
 members’ capital subscriptions to the IMF, voting power, and the amount of financial 
assistance available to them from the IMF. Quotas are normally reviewed, and possibly 
adjusted, every five years. 
R 
Rapid Credit Facility (RCF) 
Established in 2010 to provide low access, rapid, and concessional financial assistance to low-
income member countries facing an urgent balance of payments need. It is provided as an 
outright disbursement without explicit program-based conditionality or reviews. The RCF 
streamlines the IMF’s emergency assistance for low-income members and provides flexible 
support in a wide variety of circumstances, including shocks, natural disasters, and emergencies 
resulting from fragility. RCF loans have a grace period of 5½ years and a maturity of 10 years. 
Rapid Financing Instrument (RFI) 
Established in 2012 to provide rapid and low-access financial assistance to all member countries 
facing an urgent balance of payments need in the aftermath of commodity price shocks, natural 
disasters, post-conflict situations and emergencies resulting from fragility without the need for 
a full-fledged program. The RFI has replaced the previous emergency assistance policy that 
covered Emergency Natural Disaster Assistance (ENDA) and Emergency Post-Conflict Assistance 
(EPCA). Financial assistance is provided in the form of outright purchases and outstanding 
principal (purchases) are repaid within 3¼ to 5 years. 
Rate of Charge 
Rate applied to charge members on their outstanding credit to the IMF. 
Rate of Charge Adjustment for Deferred Charges 
A refundable adjustment to the rate of charge that is made under the burden sharing 
mechanism. 
Rate of Charge Adjustment for SCA-1 
A refundable adjustment to the rate of remuneration that was made under the burden sharing 
mechanism and allocated to the first Special Contingent Account (SCA-1). 
Rate of Remuneration 
Rate used to pay interest (remuneration) to members on their remunerated reserve tranche 
position with the IMF. 
 Rate of Remuneration Adjustment for Deferred Charges 
A refundable adjustment to the rate of remuneration that is made under the burden sharing 
mechanism. 
Rate of Remuneration Adjustment for SCA-1 
A refundable adjustment to the rate of remuneration that was made under the burden sharing 
mechanism and allocated to the first Special Contingent Account (SCA-1). 
RCF Principal 
Principal repayments (repurchase) of Rapid Credit Facility (RCF) loans. 
Reserve Tranche Position (RTP) 
The Reserve Tranche Position (RTP) is equal to the member’s quota less the IMF’s holdings of 
the member’s currency in the GRA. It is part of the member’s external reserves. 
RFI Principal 
Principal repayments (repurchase) of Rapid Financing Instrument (RFI) loans. 
S 
SAF Interest 
The SAF Interest is payable semiannually by a member on outstanding credit under the Structural 
Adjustment Facility (SAF), excluding additional interest levied on overdue SAF interest. 
Schedule Date 
The Schedule Date is the actual date when a member is scheduled to repay its obligation. 
SDR Allocations 
SDR Allocations are a distribution of SDRs to members by decision of the IMF. A general 
allocation requires a finding by the IMF that there is a global need for additional liquidity. 
Allocations of SDRs are made to participants in the SDR department (currently, all IMF members 
are participants) in proportion to their quotas in the IMF. 
SDR Assessments 
SDR Assessments are levied on participants in the SDR Department annually to reimburse the 
IMF for expenses incurred in operating the SDR Department. 
 SDR Holdings 
The Special Drawing Right (SDR) is an interest-bearing reserve asset created by the IMF to 
supplement members’ reserve assets. It is a purely official asset and can only be held and used 
by members in the SDR department, the IMF, and certain designated official entities. SDR 
holdings can be exchanged with other members for freely usable currency. 
SDR Interest Rate 
The SDR Interest Rate is a weighted average of interest rates on short-term financial 
instruments in the markets of the currencies included in the SDR valuation basket. It is 
determined on a weekly basis and serves as basis for calculating interest paid and charged to 
members. 
SFF Charges 
SFF Charges are charges under the Supplementary Financing Facility. 
Stand-By Arrangement (SBA) 
The Stand-By Arrangement (SBA) is the most common type of credit arrangement designed to 
provide short-term financial assistance. Purchases under Stand-By Arrangements are repayable 
in 8 quarterly installments 3 1/4 - 5 years after disbursement. 
Standby Credit Facility (SCF) 
Established in 2010 to provide concessional financial assistance to low-income countries that 
are experiencing short-term but not protracted balance of payments needs. SCF arrangements 
range from one to two years. Loans are repayable in 9 equal semiannual installments 4–8 years 
after disbursement. 
Structural Adjustment Facility (SAF) 
The Structural Adjustment Facility (SAF) was created in 1986 to provide concessional financing 
to assist low-income countries in addressing balance of payments financing needs arising from 
structural weaknesses. The SAF was financed by reflows of Trust Fund repayments, and its loans 
were extended on the same terms with a 5½ years grace period and repayable in 10 years and 
at the interest rate of ½ percent per annum. 
Supplemental Financing Facility (SFF) 
During 1979-1981, the SFF allowed countries with a Stand-By or Extended Arrangements to 
obtain supplementary and parallel credits financed by the borrowed resources. 
 Supplemental Reserve Facility (SRF) 
During 1997-2009, the SRF provided financial assistance to member countries experiencing 
exceptional balance of payments difficulties due to a large short-term financing need related to 
a sudden and disruptive loss of market confidence. Financial resources under this facility were 
provided under an associated stand-by or extended arrangement and generally available in two 
or more drawings which were expected to be repaid by the member within 1 to 1 ½ years of the 
date of each purchase, subject to extension of up to one year. 
Systemic Transformation Facility (STF) 
During 1993-1995, the STF provided temporary assistance to countries in transition from 
centrally planned to market economies facing balance of payments difficulties. Assistance was 
provided in small amounts with low conditionality. 
T 
TF Special Charges 
TF Special Charges are charges levied on overdue Trust Fund loans. 
Transaction Value Date 
The Transaction Value Date is the date of the financial transaction. 
Trust Fund 
The Trust Fund (1976-1981) was set up to provide special balance of payments assistance on 
concessional terms to developing members. These loans offered a 5½ years grace period and 
were repayable in 10 years, at an interest rate of ½ percent per annum. 
Trust Fund Interest 
The Trust Fund Interest is payable semiannually by a member on outstanding TF credit.