Definition: Arrangement

Category: IMF terminology

A decision by the International Monetary Fund (IMF) that gives a member the assurance that the institution stands ready to provide foreign exchange or SDRs in accordance with the terms of the decision during a specified period of time. An IMF arrangement - which is not a legal contract - is approved by the Executive Board in support of an economic program under which the member undertakes a set of policy actions to reduce economic imbalances and achieve sustainable growth. Resources used under an arrangement carry with them the obligation to repay the IMF in accordance with the applicable schedule, and to pay charges on outstanding purchases (drawings) and loans. http://www.imf.org/external/np/exr/glossary/showTerm.asp