2. Agencies that Facilitate
International Flows
International Monetary Fund (IMF)
IMF goals encourage increased
internationalization of business.
Its compensatory financing facility attempts to
reduce the impact of export instability on country
economies.
Financing by the IMF is measured in special
drawing rights.
3. FACTS OF IMF
Membership: 187 countries
Headquarters: Washington, D.C.
Executive Board: 24 Directors representing countries or
groups of countries
Staff: Approximately 2,500 from 158 countries
Total quotas: US$328 billion (as of 8/31/10)
Additional pledged or committed resources: $600 billion
Loans committed (as of 8/31/10): US$200 billion, of
which US$146 billion have not been drawn
Biggest borrowers (credit outstanding as of 8/31/10):
Romania, Ukraine, Hungary
4. MAIN PURPOSES
Promoting international monetary cooperation;
Facilitating the expansion and balanced growth
of international trade.
Promoting exchange stability;
Assisting in the establishment of a multilateral
system of payments; and
Making resources available (with adequate
safeguards) to members experiencing balance
of payments difficulties.
5. What does IMF DO?
The IMF promotes international monetary
cooperation and exchange rate stability,
facilitates the balanced growth of international
trade, and provides resources to help
members in balance of payments difficulties or
to assist with poverty reduction.
6. Membership
The IMF has 187 member countries. It is a
specialized agency of the United Nations but
has its own charter, governing structure, and
finances. Its members are represented through
a quota system broadly based on their relative
size in the global economy.
7. HOW?
Through its economic surveillance, the IMF
keeps track of the economic health of its
member countries, alerting them to risks on
the horizon and providing policy advice.
It also lends to countries in difficulty, and
provides technical assistance and training to
help countries improve economic
management.
8. Areas of Activity
Surveillance
It appraises its members exchange rate
policies
Analyses their general economic situation
Financial assistance to IMF member countries
Technical assistance
re: fiscal and monetary policy
9.
10. But in 2008, the IMF began making loans again to
countries hit by the financial crisis and high food and
fuel prices. In late 2008 and early 2009 the IMF lent $60
billion to emerging markets affected by the crisis.
But in 2008, the IMF began making loans again to
countries hit by the financial crisis and high food and
fuel prices. In late 2008 and early 2009 the IMF lent $60
billion to emerging markets affected by the crisis.
11. In March 2009, the Fund announced a major overhaul of
its lending framework, including modernizing
conditionality, introducing a new flexible credit line,
enhancing the flexibility of the Fund’s regular stand-by
lending arrangement, doubling access limits on loans,
adapting its cost structures for high-access and
precautionary lending, and streamlining instruments that
were seldom used.
12. MAIN ACTIVITY
Lends money to members who have trouble
meeting financial obligations - BUT, only on the
condition that they undertake economic reforms
to eliminate these difficulties for their own good.
13. INDIA- Financial Position in the Fund
as of February 28, 2011