Simplification of IMF lending : why not just one flexible credit facility?

Abstract

This paper proposes updating and improving the IMF's lending mechanism, by replacing all of its credit lines with a single financial facility. Under this single facility, costs would rise with the volume drawn down and the time elapsed. At the same time, arrangement and repayment periods would be more flexible. The result would be a less complicated financing mechanism, more readily adaptable to borrowers' needs, stronger incentives to avoid excessive use of IMF resources and equitable treatment for all member countries