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To: Joe S Pack who wrote (22714)	8/16/2002 10:42:03 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

Nope. It wasn't a hand out. The IMF lends money. It does not hands money out. This is how they lend and how much countries pay in interests and the expected repayment period. It is all there in the www.imf.org. IMF Facilities Poverty Reduction and Growth Facility (PRGF). The IMF for many years provided assistance to low-income countries through the Enhanced Structural Adjustment Facility (ESAF). In 1999, however, a decision was made to strengthen the focus on poverty, and the ESAF was replaced by the PRGF. Loans under the PRGF are based on a Poverty Reduction Strategy Paper (PRSP), which is prepared by the country in cooperation with civil society and other development partners, in particular the World Bank. The interest rate levied on PRGF loans is only 0.5 percent, and loans are to be repaid over a period of 5½–10 years. Stand-By Arrangements (SBA). The SBA is designed to address short-term balance-of-payments problems and is the most widely used facility of the IMF. The length of a SBA is typically 12 –18 months. Repayment is normally expected within 2¼–4 years unless an extension is approved. Surcharges apply to high levels of access. Extended Fund Facility (EFF). This facility was established in 1974 to help countries address more protracted balance-of-payments problems with roots in the structure of the economy. Arrangements under the EFF are thus longer (3 years). Repayment is normally expected within 4½–7 years unless an extension is approved. Surcharges apply to high levels of access. Supplemental Reserve Facility (SRF). The SRF was introduced in 1997 to meet a need for very short-term financing on a large scale. The sudden loss of market confidence experienced by emerging market economies in the 1990s led to massive outflows of capital, which required loans on a much larger scale than anything the IMF had previously been asked to provide. Countries are expected to repay loans within 1 –1½ years, but may request an extension by up to 1 year. All SRF loans carry a substantial surcharge of 3 –5 percentage points. Contingent Credit Lines (CCL). The CCL differs from other IMF facilities in that it aims to help members prevent crises. Established in 1999, it is designed for countries implementing sound economic policies, which may find themselves threatened by a crisis elsewhere in the world economy—a phenomenon known as "financial contagion". The CCL is subject to the same repayment conditions as the SRF, but carries a smaller surcharge of 1½–3½ percentage points. Compensatory Financing Facility (CFF). The CFF was established in the 1960s to assist countries experiencing either a sudden shortfall in export earnings or an increase in the cost of cereal imports caused by fluctuating world commodity prices. The financial terms are the same as those applying to the SBA, except that CFF loans carry no surcharge. Emergency assistance. The IMF provides emergency assistance to countries that have experienced a natural disaster or are emerging from conflict. Emergency loans are subject to the basic rate of charge and must be repaid within 3¼–5 years.