IMF creates new loans to help with financial crises

15 January 1998

The IMF has established the Supplemental Reserve Facility (SRF) to provide extra resources to countries with balance of payments problems caused by rapid capital outflows such as those experienced in South East Asia. South Korea is the first country to have received loans from it.

SRF funds will be made available to supplement the Fund’s usual loans. Access to the SRF‘s resources will not be subject to the value of a country’s quota but will be decided by the IMF, allowing it to lend larger amounts than usual. The loans are for 1 year, after which they must be repaid within eighteen months. They bear a higher rate of interest than the average charged for IMF loans.