stand-by arrangement

stand-by arrangement definition - finance
A funding arrangement in which the International Monetary Fund (IMF) agrees to provide emergency funding to one of its member countries. However, in order to obtain the funding, the country has to agree to follow the IMFÂ’s economic plan, which may involve promises to lower inflation, decrease budget deficits, and reduce government spending.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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