Macro Analysis /
Global

IMF emergency financing tracker: Half its members have now sought emergency help

  • 17 countries have so far had emergency financing approved

  • Most recent approvals include El Salvador, Panama and Pakistan

  • IMF also introduces a new lending facility, the Short-term Liquidity Line (SLL)

IMF emergency financing tracker: Half its members have now sought emergency help
Stuart Culverhouse
Stuart Culverhouse

Chief Economist & Head of Fixed Income Research

Follow
Tellimer Research
17 April 2020
Published byTellimer Research

Our updated tracker seeks to identify countries that have requested IMF financial support, under its different guises, in order to help them deal with the impact of Covid-19. We do not claim it is exhaustive, but hope it provides a useful guide to investors on the current state of play. It is based on information that has been reported by the IMF itself, various media or national governments. We aim to produce regular updates.

The IMF Managing Director Kristalina Georgieva said on 15 April in her opening remarks to the IMF/WB Spring Meetings that 102 countries had requested emergency financing from the Fund so far and that the Board will have approved half of these requests by the end of this month. She noted 15 (at that time) had received disbursements already "in a record short time". With demand running at 102 countries, that's over half (54%) of the Fund's 189 members.

Our tracker captures 31 countries that we know of so far that have either sought, or are seeking, emergency help or have made drawings under their existing arrangements, or are seeking new ones (this is up from 25 in our last update). Since our last update on Tuesday 14 April, we identify seven countries that have had emergency financing facilities approved, including El Salvador, Panama and most recently Pakistan (this includes two – Chad and Pakistan – that were already pending), taking the total number of countries now to 17. In addition, the IMF confirmed at its Sub-Saharan Africa press briefing on 15 April that discussions are underway for an RCF for Mozambique and Georgia reached staff level agreement on its existing EFF with augmented access (but this had been flagged before). 

The IMF also announced on 15 April that it had created a new lending facility to strengthen its crisis response. The Short-term Liquidity Line (SLL) is a revolving and renewable backstop for member countries with very strong policies and fundamentals in need of short-term moderate balance of payments support. The SLL will provide revolving access of up to 145% of quota. We're not sure how it will work, but it seems to us to fill a gap between the Flexible Credit Line (FCL) and the Precautionary and Liquidity Line (PLL).