Standby Agreement means an agreement providing for the purchase with notes (e.g., in effect from time to time, which may be either a liquidity facility or credit facility) between the issuer of a security and its underwriters who will be charged a standby fee for a standby agreement. The Standby Agreement is an economic program of the International Monetary Fund (IMF) and World Bank aimed at the financial structural adjustment to a member country in need of financial assistance.
Reference Definition by OECD: Standby Agreement is the IMF lending facility established in 1952 through which a member country can use IMF financing up to a specified amount to overcome short-term or cyclical balance of payments difficulties. Instalments are normally phased on a quarterly basis, with their release conditional upon the member’s meeting performance criteria, such as monetary and budgetary targets. These criteria allow both the member and the IMF to assess the member’s progress in policy implementation and may signal the need for further corrective policies.
Related Definitions in the Project: The Commercial Definitions; Project Contract
