Question

Q50) Assistance under _________- is given by the IMF to countries to address long term balance of payment problems requiring fundamental economic reforms

• A. a) Extended fund facility (EFF)
• B. b)Stand by arrangements (SBA)
• C. c)Poverty reduction and growth facility (PRGF)
• D. d)Exogenous shock facility (ESF)

Answer 1

The correct option is A

a) Extended fund facility (EFF)

Answer 50: A

Explanation: When a country faces serious medium-term balance of payments problems because of structural weaknesses that
require time to address, the IMF can assist with the adjustment process under an Extended Fund Facility (EFF). Compared to
assistance provided under the Stand-by Arrangement, assistance under an extended arrangement features longer program
engagement—to help countries implement medium-term structural reforms—and a longer repayment period)