The Executive Board of the International Monetary Fund has approved an overhaul of the Fund's lending framework  that should make it easier and more attractive for emerging market economies to seek IMF support during the global crisis.

The IMF announced the creation of a new Flexible Credit Line for countries with very strong fundamentals, policies and track records of policy implementation. Once approved, these loans - a type of insurance policy for strong performers - can be fully disbursed when the need arises rather than being conditioned on compliance with policy targets as in traditional IMF - supported programmes.

The 185-member institution also announced that it would double non-concessional loan access limits, enhance its traditional Stand-By facility, and simplify lending terms. Complementary reforms of concessional lending instruments for low-income members are also in train.

'These reforms represent a significant change in the way the Fund can help its member countries—which is especially needed at this time of global crisis,’ said IMF Managing Director Dominique Strauss-Kahn. 'More flexibility in our lending along with streamlined conditionality will help us respond effectively to the various needs of all our member countries—especially emerging market and developing countries. This, in turn will help them to weather the crisis and return to sustainable growth.

These reforms should provide faster access to IMF loans and with less of the usual policy conditions that have scared off some countries. Efforts are also underway to secure a boost in IMF lending resources, a matter that will be discussed at the London Summit.