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Which IMF initiative supports low-income countries with concessional loans to promote economic stability?
  • a)
    Extended Credit Facility
  • b)
    Stand-By Arrangement
  • c)
    Flexible Credit Line
  • d)
    Rapid Financing Instrument
Correct answer is option 'A'. Can you explain this answer?
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Which IMF initiative supports low-income countries with concessional l...
The IMF’s Extended Credit Facility (ECF) provides concessional loans to low-income countries to support long-term economic stability and poverty reduction. It offers flexible, medium-term financing to address structural economic challenges, unlike the Stand-By Arrangement, which targets short-term needs, the Flexible Credit Line, which is precautionary, or the Rapid Financing Instrument, which provides quick emergency support.
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