🏦 IMF and World Bank Facilities Available to Member Countries

🌍 World Bank: Providing Loans for Capital Infrastructure of a Country

World Bank: Providing loans for building capital infrastructure of a country
📌 World Bank provides long-term loans and grants to countries for infrastructure development such as roads, schools, dams, and health facilities.

The World Bank provides a variety of financial assistance facilities to its member countries. Among the listed options:

💵 Structural Adjustment Lending (SAL):

• It is associated with the World Bank and offers Structural Adjustment Loans to support broad macroeconomic reforms.

🌍 IMF: International monetary cooperation among member countries

The International Monetary Fund (IMF) provides a variety of financial assistance facilities to its member countries. Among the listed options:

🏦 Extended Fund Facility (EFF)

• Offers medium- to long-term assistance to countries facing serious balance of payments problems due to structural weaknesses.

• Supports economic reform programs over 3–4 years.

💰 Compensatory Financing Facility (CFF)

• Provides short-term financing to member countries experiencing temporary export shortfalls (e.g., due to global price shocks).

• Aimed at stabilizing economies affected by external factors.

⚖️ Stand-by Arrangements (SBA)

• The most commonly used IMF lending tool, designed for short-term balance of payments problems.

• Provides quick-disbursing financial aid to help stabilize economies.