What is PLL lending?
The Precautionary and Liquidity Line (PLL) is designed to flexibly meet the liquidity needs of member countries with sound economic fundamentals but with some remaining vulnerabilities that preclude them from using the Flexible Credit Line (FCL). …
What four countries are the biggest borrowers from the IMF?
As of January 2012, the largest borrowers from the IMF in order were Greece, Portugal, Ireland, Romania, and Ukraine.
What is a precautionary loan?
The Precautionary and Liquidity Line (PLL) builds on the strengths and broadens the scope of the Precautionary Credit Line (PCL). The PLL provides financing to meet actual or potential balance of payments needs of countries with sound policies, and is intended to serve as insurance and help resolve crises.
What is IMF Extended Fund Facility?
The Extended Fund Facility is lending facility of the Fund of the IMF and it was established in 1974 to help countries address medium- and longer-term balance of payments problems.
What is WF PLL on credit report?
WF PLL is a credit report code that stands for Wells Fargo Personal Lines and Loans. WF PLL may be on your credit report as a hard inquiry. This usually happens when you apply for a personal loan or line of credit with Wells Fargo.
What are IMF loans?
IMF lending aims to give countries breathing room to implement adjustment policies in an orderly manner, which will restore conditions for a stable economy and sustainable growth. These policies will vary depending upon the country’s circumstances.
Who controls the World Bank?
The organizations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organizations on all matters, including policy, financial or membership issues.
What happens if a country fails to pay back a loan from the IMF?
When countries borrow money from foreign countries, it is known as foreign country debt. When countries are unable to pay back on their loans to their creditors then they declare bankruptcy and are then considered defaulted. Most of the sovereign defaults are foreign currency defaults.
Does IMF charge interest?
The rates used by the IMF to pay interest and levy charges each financial quarter since 1969 could be searched here. The SDR interest rate, calculated every week, is the primary rate from which other rates are derived. Charges on members’ outstanding use of IMF credit are levied at the adjusted rate of charge.
Why does the IMF lend money to countries?
According to its website, the IMF lends money to member countries to help them through economic crises or to prevent crises occurring.
What has the global financial crisis taught us about the IMF?
The global financial crisis highlighted the need for effective global financial safety nets to help countries cope with adverse shocks. A key objective of lending reforms since the global financial crisis was to complement the traditional crisis resolution role of the IMF with more effective tools for crisis prevention.
What is the IMF’s Precautionary borrowing policy?
In accessing IMF resources on a precautionary basis, countries pay an annual commitment fee on resources available for purchase in a 12-month period, which is refunded pro rata if they opt to draw on those resources during the relevant period.
What is the IMF’s flexible credit line?
Flexible Credit Line ( FCL ): The FCL is designed for countries that the IMF deems to have strong policy frameworks and track records in economic performance that are in an immediate cash crunch – but want to avoid the stigma and adverse market reaction associated with regular IMF programmes with conditionality.