The IMF is an international organization established in 1944 to promote international monetary cooperation, exchange stability, and orderly exchange arrangements among member countries. It provides financial assistance to its member countries facing balance of payments problems.
Various funds and facilities under IMF:
1. General Resources Account (GRA): Main pool of financial resources for member countries to borrow from to address balance of payments difficulties.
2. Special Drawing Rights (SDRs): International reserve assets allocated to member countries based on their IMF quotas, usable as reserves or exchanged for currencies.
3. Poverty Reduction and Growth Trust (PRGT): Offers concessional financial aid to low-income countries facing balance of payments issues, including loans and debt relief.
4. Extended Fund Facility (EFF): Provides assistance for member countries with prolonged balance of payments problems requiring deeper policy adjustments.
5. Standby Credit Facility (SCF): Offers financial aid for short-term balance of payments issues or sudden economic shocks to restore stability.
6. Rapid Financing Instrument (RFI): Rapid assistance for countries facing urgent balance of payments needs due to emergencies like natural disasters or health crises.
7. Flexible Credit Line (FCL): Precautionary lending for countries with strong economic policies to draw upon in case of balance of payments problems.
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