“Rapid Financing Instrument” and “Rapid Credit Facility” are related t

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“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following ?

Asian Development Bank
International Monetary Fund
United Nations Environment Programme Finance Initiative
World Bank
This question was previously asked in
UPSC IAS – 2022
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The “Rapid Financing Instrument” (RFI) and “Rapid Credit Facility” (RCF) are lending instruments provided by the International Monetary Fund (IMF). The RFI provides rapid financial assistance, with limited conditionality, to all member countries facing an urgent balance of payments need. The RCF provides similar assistance to low-income countries. These facilities are designed for situations where a full-fledged IMF program with detailed conditionality is not necessary or feasible.
The IMF provides financial assistance to member countries experiencing actual or potential balance of payments problems. RFI and RCF are part of the IMF’s toolkit for rapid disbursal of funds in emergencies.
Other key lending instruments of the IMF include Stand-By Arrangements (SBAs), Extended Fund Facility (EFF), Poverty Reduction and Growth Trust (PRGT) facilities (like ECF, SCF, RSF), etc., which typically involve more extensive conditionality and structural reforms.

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