Okay, here are the steps: * Originally, 1 USD = 0.6 JMD (given) * The Jamaican government devalued the JMD by 20% as part of the IMF bailout conditions * To calculate the new exchange rate: - Original rate: 1 USD = 0.6 JMD - 20% of 0.6 JMD is 0.12 JMD (0.6 * 20% = 0.12) - So the JMD was devalued by 0.12 JMD - New rate = Original rate - Depreciation - New rate = 0.6 JMD - 0.12 JMD = 0.48 JMD * Therefore, the new exchange rate is

3. DEBT CRISES
 The Government starting to face a
debt crises which stated to develop in
late 2009, right after the recession.
 The status of the Greek government
debt was downgraded to a high-yeild
bond (also known as a “junk bond”) by
April 2010.
 The IMF and countries of the
Eurozone agreed to a $110 Billion (in
Euros) bail out loan for Greece with the
condition of implementing a harsh
austerity measures.
 This led to a decline in the use of
private capital markets in terms of
covering financial needs
 Greece were at risk of going into

5. ECONOMIC SITUATIONS
 There has been a decline in the
GDP up to 13% annually since the
crises.
 By 2012, Greece went through a
burden in terms of debt with 198% of
GDP, one of the highest in the world.
 As a member of the Eurozone,
Greece cannot simulate its economy
while monetary policies have been
implemented.
 There has been a decline in the
currency of the Euro and stock
markets worldwide since the
government debt has been
downgraded to “junk bond”.

8. GEORGE PAPANDREOU
 He was elected as Prime Minister
of Greece on October 6, 2011.
 Prior to his tenure as Prime
Minister, he was the Minister of
National Education and Religious
Affairs on 2 occasions and the
Minister of Foreign Affairs.
 After facing almost 2 years of the
debt crises, he resigned November
11, 2011 to make room for a national
unity government. This led to
Lucas Papademos being appointed
as Prime Minister.
 He is currently the last Pime
Minister to be elected.

9. Greece in 2012
 43 lawmakers from the ruling Socialist PASOK and the New Democracy
were expelled from their parties thus reducing the ruling majority from 236
seats to 193 seats. This will allow the IMF , European Central Bank and the
European Union to release jointly funds that will cover Greece’s debt from
2012-2014.
 On February 21, the Greek Government ratified a second bailout package
worth of $130 billion (in Euros) which was under negotiations by Eurozone
leaders since October 2011.
 The reason for the expulsion of the lawmakers was that they voted against
a bill that will finalize a 5th harsh austerity package.
 The austerity package was released on Febuary 12. The previous 4 were
released since 2010: February 4, 2010; March 5, 2010; May 1, 2010; June
2011 (mid-term)

10. 5th Austerity Package
 The Austerity package was under negotiations from October 2011 until
January 2011 by Parliament in order to prevent themselves from default.
 The Austerity Package includes:
- Reducing the minimum wage of $750 (in Euros) per month by 22%.
- Cancellation of holiday wage bonuses (2 months worth of full-time
pay).
- $300 million (in Euros) worth of pension cuts in 2012.
- Reduction of 150,000 from state sector by 2015 (15,000 by 2012).
- Law changes to make it easier to layoff workers.
- Health and Defence spending cuts.
- Rights given to the industry sector in terms of reducing wages.
- Opening up closed professions to increase competition, particularly
in health, tourism, and real estate sectors.
- Privatizations worth $15 billion (in Euros) which includes Greek gas
companies such DEPA and DESFA.

11. Social Impact
 The debt crises created a huge
social impact, causing protests
and riots which started on May 5,
2010 in Athens.
 In 2012, 500,000 protestors
gathered in Athens to protest
against the Prime Minister after
the release of the 5th austerity
package.
 Many stores were looted and
burned.
 About 200 people were
injured: 150 protestors, 50
officers
 3 people died from the
protests.

12. http://www.youtube.com/watch?v=NljVxqR
pbw0

13.  Happened on May 6 to elect 300
members of the Greek Legislature.
 This elections a year ahead of schedule
based on the decisions of other members
of the Eurozone and the IMF.
 The purpose of this election was to
form a coalition government in order to
deal with the crises.
 The New Democracy party won with
108 seats.

14. BACKGROUND OF THE IMF
 Came to existence after World War II.
 They play a part in shaping the global economy .
 They make significant financial contributions towards countries who
are heavily in debt or at risk of going into default.
There are 188 members of the IMF.
 The headquarters is located at Washington D.C .

15. Key IMF Activities
The IMF supports its membership by providing
 policy advice to governments and central banks based on analysis of
economic trends and cross-country experiences;
 research, statistics, forecasts, and analysis based on tracking of global,
regional, and individual economies and markets;
 loans to help countries overcome economic difficulties;
 concessional loans to help fight poverty in developing countries;
 technical assistance and training to help countries improve the
management of their economies.

17. Articles of Agreement
 It was adopted at the United Nations Monetary and Financial Conference at Bretton
Woods, New Hamshire on July 22, 1944.
 Came in place on December 27, 1945. There have been some modifications towards
the agreement since it’s inception.
 There 31 articles that are listed in the Agreement.
 Articles include;
 Currency
 Membership
 Administrative and Financial Restrictions
 Withdrawal of membership
 Conditions such as free trade and austerity measures
 Interests
http://www.imf.org/external/pubs/ft/aa/index.htm

18. ORGANIZATION LEADERSHIP
Board of Governors
 2 governors are appointed from each member of the IMF.
 Meet once a year and appoint the Executive Directors of Executive Board.
 Advised by the International Monetary and Financial Committee and Development
Committee .
Excecutive Board
 There are 24 Executive Directors in the Board representing all 188 members of the
IMF.
 As of 2008, each of the eight countries appoint an Executive Director: United States,
Japan, Germany, France, U.K, China, Russia and Saudi Arabia. The remaining 16
represent from 4 to 22 countries.
Managing Director
 The Managing Director serves as the head of the
IMF and Chairman of the Executive Board.
 There have been 11 overall managing directors with 5
of them coming from France.
 Christine Legarde serves as the current Managing
Director of the IMF.

19. DOMINIQUE STRAUSS-KAHN
 Strauss-Kahn served as the Managing
Director of the IMF from November 1,
2007-May 18, 2011.
 On May 14, 2011, Strauss Khan was
arrested and charged with sexual assault
on 32-year-old housekeeper, Nafissatou
Diallo in the Sofitel New York Hotel.
 4 days later, he resigned as Managing
Director.
 He was placed under house arrest on
May 19, 2011.
 He was dismissed of all charges on
August 23, 2011.
 After the case, his wife dropped out
the French Election.

20. http://bcove.me/nv1cp4nf

21. ACTIVITY TIME!

22. CAD USD
Rate: 1 CAD = 0.997673 USD Rate: 1 USD = 1.00233 CAD
$1000 CAD $ 997.67 USD
The Currency of the Jamaican Dollar (JMD) is $0.60 USD. On September 6, 1993,
the Jamaican government were in heavily in debt and requires financial
assistance (a loan) from the IMF. The IMF release a bailout loan with conditions
that have been implemented. One of conditions was to devalue the currency by
20%.
On October 13, 1993, an American tourist wanted to exchange $100 USD on a
currency exchange rate.
By exchanging $100 USD on a currency exchange rate, how much
money will the tourist will receive in Jamaican dollars?