The cost of borrowing under the FCL is the same as that under the Fund’s traditional Stand-By Arrangement (SBA). If borrowing on a precautionary basis, countries pay only a commitment fee that is refunded if they opt later to draw on the loan. Commitment fees range with the scale of lending and are around 24–27 basis points for lending between 500 and 1000 percent of quota.

The cost of drawing under the FCL varies with the scale and duration of lending. Considering the currently low world interest rates, the effective cost of borrowing under the FCL (or an SBA) for access between 500 and 1000 percent of quota currently ranges between 2.3–2.9 percent before duration-based surcharges apply (these surcharges would raise the cost of borrowing up to 2.7–3.6 percent whenever the country’s outstanding credits has been above 300 percent of its Fund quota for more than 3 years). These interest rates exclude a flat 50 bps service charge, which is applied to all Fund disbursements.