Extended Fund Facility (IMF)
It is an IMF lending facility to help members with balance of payments problems that need an adjustment period longer than that provided for under a standby arrangement
The EFF was established to provide assistance to countries:
- experiencing serious payments imbalances because of structural impediments; or
- characterized by slow growth and an inherently weak balance of payments position.
The EFF provides assistance in support of comprehensive programs that include policies of the scope and character required to correct structural imbalances over an extended period.
Why in news?
- Sri Lanka, in the midst of a crisis over deterioration of the balance of payments (BOP) position, has got the much-needed reprieve with the International Monetary Fund (IMF) agreeing to provide $ 1.5 billion through a three-year-long Extended Fund Facility (EFF).
- Pakistan also received money from IMF under EFF