Agencies that Facilitate International FlowsInternational 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.
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
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.
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.
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.
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.
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
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.
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.
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.
INDIA- Financial Position in the Fund as of February 28, 2011