3. The IMF was founded by John Maynard
Keynes and Harry Dexter White.
4. The IMF has a total of 188 member
countries and the map below shows which
of the countries those are.
5. The IMF's current managing director is Ms.
Christine Lagarde of France, who took office on
June 28, 2011.
Each members of the executive board runs a
particular department of the IMF.
The IMF has a total of 2,300-2,600 employees,
mostly based in its Washington, D.C.
headquarters
6. WHY WAS THIS ORGANIZATION
CREATED
The IMF was created for two reasons
The first is so that the company can loan money to other
countries to help them build up their economy and then
the country would pay the IMF back after it has improved
its economy.
The second reason is that countries that are going
bankrupt have access to money so they can save their
country from going bankrupt
8. PURPOSES
1) Facilitate the cooperation of countries on monetary
policy
2) Assist the liberalization of international trade by
helping countries increase their real incomes while
lowering unemployment.
3) Help stabilize exchange rates between countries.
(Exchange Agreements)
4) Maintain a multilateral system of payments that
eliminates foreign exchange transactions.
5) Provide a safeguard to members of the IMF
against balance of payments crises
10. 1) Buffer Stock Facility: (1969)
A buffer stock scheme is an attempt to use commodity storage for the
purposes of stabilizing prices in an entire economy. Specifically, commodities are
bought when there is a surplus in the economy, stored, and are then sold from
these stores when there are economic shortages in the economy.
Provide financial assistance to members with a temporary balance of payments
need arising from contributions to buffer stocks.
Draw up 30% of quota
Repurchase b/w 3 & 5 yrs.
2) Extended Fund Facility: (1974)
When a country faces serious medium term BOP it provides EFF for
longer period.
Draw up 300% of quota
Period - Normally approved 3 yrs, up to 10 yrs.
Interest rate- 4-6.5 %
11. 3) Supplementary Financing Facility:(1977)
IMF makes temporary arrangements to provide supplementary financial
assistance to member countries facing payments problems relating to their
present quota sizes.
4) Structural adjustment facility: (1986)
The main aim is to provide concessions to carry out medium term macro
economic & structural adjustment programs.
Period - 5 1/2 - 10 yrs
Interest rate - 0.5 - 1%
5) Enhanced structural adjustment facility: (1987)
Created to meet the medium term financing needs of low income
countries.
Draw up 100% of quota.
Period - 5 1/2 - 10 yrs
Interest rate - 0.5 %
12. 6) Compensatory and contingency financing facility:
(1988)
The main purpose is to provide timely financing to members experiencing
a temporary short fall in export earnings or excess in import costs.
Period - 3 1/2 - 5 yrs.
7) Emergency structural adjustment loans: ( 1999)
IMF helps the countries which are suffering from financial crisis.
Interest rate - 3 - 5 %
8) Contingency credit line: (1999)
Provides funds to the countries which are affected by financial crisis arises
elsewhere in the world
Period - 1 - 2 yrs
9) Supplemental reserve facility: (1997)
When the member country experience the exceptional BOP problems, it
provides funds when there is a need of large short term finance which arises from
sudden loss of market.
Period - 1 - 1 1/2 yrs.
