and ± to provide temporary financial assistance to countries to help ease balance of payments adjustment . ‡ Established to ± promote international monetary cooperation ± exchange stability.IMF í A Synopsis ‡ An international organization of 184 member countries. ± orderly exchange arrangements. ± to foster economic growth and high levels of employment.

IMF í Purposes ‡ To promote international monetary cooperation ‡ To facilitate the expansion and balanced growth of international trade ‡ To contribute to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members. . ‡ To promote exchange stability ‡ to maintain orderly exchange arrangements among members ‡ To avoid competitive exchange depreciation.

‡ To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards. . ‡ In the elimination of foreign exchange restrictions which hamper the growth of world trade. ‡ To shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.IMF í Purposes ‡ To assist in the establishment of a multilateral system of payments in respect of current transactions between members.

Role of IMF Capital A/C Convertibility Surveillance Global Liquidity To Member Countries .

Facilities of IMF Regular Facilities Concessional Facilities .

Regular Facilities of IMF Standíby Agreements Extended Fund Facility .

Concessional Facilities of IMF Poverty Reduction & Growth Facility Heavily Indebted Poor Countries Initiative .

Special Drawing Rights ‡ SDR Dept ± Authority to allocate SDR ± Valuation of SDR ‡ ‡ ‡ ‡ Separation of operations and transactions Separation of assets and property Recording and information Participants and other holders .

Allocation and Cancellation ‡ ‡ ‡ ‡ Principles and considerations Allocation and cancellation Unexpected major developments Decisions on allocations and cancellations .

Principal Functions Lending Surveillance Technical Assistance To Member Countries .

‡ Over the years. known as the "rate of charge. ‡ An IMF loan is usually provided under an "arrangement. the IMF has developed various loan instruments. ‡ Financial assistance enables a country to correct its balance of payments problem." that are tailored to address the specific circumstances of its diverse membership." which stipulates the specific policies and measures a country has agreed to implement to resolve its balance of payments problem. or "facilities.IMF Lending ‡ Provides loans to countries experiencing balance of payments problems." and some carry a surcharge. . ‡ The volume of loans provided by the IMF has fluctuated significantly over time. ‡ All facilities are subject to the IMF's market-related interest rate.

to promote external stability. ‡ IMF surveillance provides the mechanism for international cooperation to monitor economic developments on a global scale.IMF Surveillance ‡ IMF encourages a dialogue among its member countries on the national and international consequences of their economic and financial policies. ‡ The IMF has wowed to ± help member countries strengthen their policy frameworks ± improve transparency & accountability ‡ The IMF has a mandate to oversee ± the international monetary system ± each member's compliance with the obligations .

monetary. ‡ Key instruments of global and regional surveillance are two biannual publications. µWorld Economic Outlook¶ and µGlobal Financial Report¶ . ‡ Each year IMF economists visit the member country to gather information and hold discussions. and fiscal policies remain at the center of IMF surveillance. ‡ The IMF continuously reviews global and regional economic trends. It regularly examines economic developments and policies.IMF Surveillance ‡ Exchange rate.

IMF Technical Assistance ‡ The objective of IMF technical assistance is to contribute to the development of the productive resources of its member countries. ‡ Who benefits from IMF technical assistance? ‡ In what areas does the IMF provide technical assistance? ‡ In what areas does the IMF provide technical assistance? .

IMF Membership ‡ Original Members Other Members .

‡ IMF may ease some of the repayment terms. . a reduction in the face value of the debt. in the most severe cases. like an increase in maturities. or.IMF Crisis Resolution ‡ IMF helps countries resolve economic crises especially the BOP problem ‡ How does IMF lending help? ‡ Why do economic crises occur? ‡ IMF provides concessional loans under the Exogenous Shcoks Facility (ESF) to meet low-income countries' temporary needs arising from exogenous shocks. ‡ Provides emergency assistance to countries that have experienced a natural disaster or are emerging from armed conflict.

IMF Crisis Resolution ‡ IMF loan programs are tailored to the specific circumstances of individual countries. ‡ Together with the World Bank. the IMF has also been working to reduce to sustainable levels the debt burdens of heavily indebted poor countries under the enhanced µHeavily Indebted Poor Countries Initiative¶ and the µMultilateral debt Relief Initiative¶. .

PRGF-supported programs focus on strengthening governance.Poverty Reduction & Growth Facility ‡ What is PRGF? ‡ Principles: ± First. . ± Third. PRGF-supported programs reflect more closely each country's poverty reduction and growth priorities. ± Second. the principle of broad public participation and greater country ownership is central to the PRGF.

Poverty Reduction & Growth Facility Countries Eligible for the IMF Poverty Reduction and Growth Facility (PRGF) ‡Afghanistan ‡Bangladesh ‡Bhutan ‡Mozambique ‡Nepal ‡Cambodia ‡Nigeria ‡Central African ‡Pakistan ‡Chad ‡Rwanda ‡Côte d'Ivoire ‡Senegal ‡Somalia ‡Ethiopia ‡Sri Lanka .

Credits ‡ Anushka Gole ‡ Pratiksha Kamath ‡ Piyush Tantia ‡ Ishan Gupta ‡ Karan Thaker ‡ Jimit Mehta ‡ Ankita Rawate .

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