Definition: Emergency financing mechanism

Category: IMF terminology

A set of exceptional procedures to facilitate rapid Executive Board approval of International Monetary Fund (IMF) financial support for a member while ensuring the conditionality necessary to warrant such support. These emergency measures are used only in circumstances representing, or threatening to give rise to, a crisis in a member’s balance of payments that requires an immediate IMF response. http://www.imf.org/external/np/exr/glossary/showTerm.asp