Changes to the Fund’s Financing Assurances Policy in the Context Of Fund Upper Credit Tranche (UCT) Financing Under Exceptionally High Uncertainty

The Executive Board of the International Monetary Fund (IMF) approved changes to Fund’s financing assurances policy. apply in situations exceptionally high uncertainty, involving exogenous shocks that are beyond control country authorities and reach their economic policies, which generate larger than usual tail risks. adopted could enable design a Upper Credit Tranche (UCT) program particular by modifying policies two ways. first change allows official bilateral creditors provide an upfront credible assurance about delivering debt relief and/or with delivery contingent second-stage element once uncertainty has been resolved. This would help establish medium-term viability is being restored. second extends use capacity-to-repay from creditors/donors emergency UCT arrangement context. adequate safeguards. These application any specific case situation require weigh whether it prepared accept enterprise risks such entail.