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  • 1. IMF International Monetary Fund
  • 2. What is the IMF? • The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustments.
  • 3. Why was it created? • The IMF was conceived in July 1944, when representatives of 45 governments meeting in the town of Bretton Woods, New Hampshire, in the northeastern United States, agreed on a framework for international economic cooperation.
  • 4. What does it do? • Surveillance • Lending • Technical assistance
  • 5. Surveillance It is an assessment of economic and financial developments, which provides a framework that facilitates the exchange of goods, services, and capital among countries and sustains sound economic growth. It consists in: Focusing on assessing whether countries' policies promote external stability It is to be remembered that surveillance is a collaborative, candid, and evenhanded process between the Fund and its members
  • 6. Lending - IMF lending enables countries to rebuild their international reserves; stabilize their currencies; continue paying for imports; and restore conditions for strong economic growth. - IMF does not lend for specific projects. - It eases the adjustment policies and reforms that a country must make to correct its balance of payments problem and restore conditions for strong economic growth.
  • 7. Technical assistance • It supports the development of the productive resources of member countries by helping them to effectively manage their economic policy and financial affairs. • About 90 percent of IMF technical assistance goes to low and lower-middle income countries, particularly in sub-Saharan Africa and Asia.
  • 8. Success of the IMF: Jamaica • • • The IMF praised the government for tackling its huge debt burden and improving investor confidence. It has also laid out plans to reduce the country's debt as a percentage of GDP from its current level of 145% to 100% by 2009. economic growth of up to 4% a year was possible, it said, given a recovery in tourism and mining sectors.
  • 9. Failures: Argentina