stand-by arrangement


Also found in: Acronyms.

Standby Agreement

An agreement between the issuer of a security and its underwriters stating that the underwriters are responsible for any unsold portion of the issue. That is, the underwriters agree to buy the remainder of a new issue if they are unable to place its entirety with investors. This transfers the risk of the unsold portion of the issue from the issuer to the underwriters. This guarantees that the issuer will raise the capital it intends to raise, but leaves the underwriters with the possibility that they must purchase an issue with low value. As a result, underwriters charge a standby fee for a standby agreement. It is also called firm commitment underwriting or a backstopped deal.

stand-by arrangement

an arrangement between the INTERNATIONAL MONETARY FUND and a member country under which the member country is entitled to borrow up to an agreed amount of foreign currency from the Fund to cover a possible deficit on its BALANCE OF PAYMENTS.
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Erdogan said Turkey had been standing on its feet in recent days, and not only Turkey but also the fund was thinking that there was no need for a stand-by arrangement.
The new arrangement follows a 15-month program supported by a Stand-By Arrangement, which was approved by the executive Board on 20 December 2007 and expired on 18 March 2009.
Turkey has signed 19 stand-by arrangements with the IMF, but it could successfully complete only the last two of them.
1 million disbursement for Pakistan after the first review of Pakistans economic performance under a program supported by a 23-month Stand-By Arrangement (SBA).
It is expected that this program will be submitted to the IMF's Executive Board, together with a request for a 15-month stand-by arrangement equivalent to $600 million, in mid- December.
The second phase occurred on December 23, 2005, which was the date of approval by the International Monetary Fund of a formal Stand-By Arrangement with Iraq.
Sri Lanka has successfully completed the Stand-by Arrangement (SBA) in April 2012 and currently does not have a program with the International Monetary Fund (IMF) the global lender said.
The mission, led by George Tsibouris, was the fifth review of the program under the Stand-By Arrangement (SBA) approved by the Fund's Executive Board on July 27, 2011.
The small difference and the fact that the slippage was induced by smaller EU funds inflows, mainly due to the blocking of some key EU funds programs, this should not complicate the discussions for a successor Stand-By Arrangement.
Stand-by arrangement is one of the mostly-used IMF mechanisms.
by the Stand-By Arrangement (SBA), it was announced here late Wednesday.
This program is being supported by an IMF stand-by arrangement in the amount of SDR 12.