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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'Yes, the program has ended,' Rotich told reporters, when asked about the IMF stand-by arrangement. 'We will continue engaging the fund going forward,' he added.
The cabinet authorized Finance Minster, Umayya Toukan, to discuss and negotiate with the IMF to enable the kingdom to benefit from the Extended Fund Facility program after the end of the current three-year stand-by arrangement (SBA), which expires in August.
Pakistan on Friday paid some $146 million to International Monetary Fund (IMF) on account of 20th installment of Stand-By Arrangement (SBA).
We think that the authorities will use this opportunity to announce a new precautionary stand-by arrangement with the IMF, covering two years and aimed at restructuring state-owned enterprises.
The rise in imports bill and payment of International Monetary Fund's (IMF) Stand-by Arrangement (SBA) facility installments have led to this unprecedented increase.
The Executive Board of the International Monetary Fund (IMF) has approved a 24-month Stand-By Arrangement for an amount equivalent to Special Drawing Rights (SDR) 1.146 billion (US$1.74 billion) to Tunisia to support the countryaACAOs economic reform programme during 2013-2015 period.
Aa memorandum of understanding (MoU) defines the conditions for the disbursement, namely a satisfactory track record in the implementation of the stand-by arrangement with the International Monetary Fund and the fulfilment of specific conditions related to each tranche.
TUNIS (TAP)- "Tunisia is in talks with the International Monetary Fund (IMF) ahead of a Stand-By Arrangement (SBA) of 2.73 billion Tunisian Dinars over two years," Governor of the Central Bank of Tunisia (BCT) Chedly Ayari told TAP.
"In light of the unfolding developments on the ground, the Egyptian authorities have asked to postpone their request for a Stand-By Arrangement with the IMF," an International Monetary Fund spokeswoman said.
Finance Ministry official told that at a time when country entered in a Stand-by Arrangement (SBA) facility with the IMF in November 2008 dollar valued about Rs79, which has by now jumped to Rs.96.
"At the request of the Ukrainian authorities, the IMF mission scheduled to visit Kyiv on December 7-17 to initiate discussions on a Stand-By Arrangement (SBA) will be rescheduled to the second half of January," Max Alier, the IMF resident representative in Ukraine, said in a statement.
The United Nations Stand-by Arrangement System (UNSAS) was established in 1994, to promote more efficient peacekeeping operations.