IMF
...tional or international prosperity. · In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members The IMF helps its member countries by: · Reviewing and monitoring national and global economic and financial developments and advising members on their economic policies; · Lending them hard currencies to support adjustment and reform policies designed to correct balance of payments problems and promote sustainable growth; and · Offering a wide range of technical assistance, as well as training for government and central bank officials, in its areas of expertise. FINANCIAL RESOURCES OF IMF · The IMF's resources come mainly from the quota (or capital) subscriptions that countries pay when they join the IMF, or following periodic reviews in which quotas are increased. · Quotas are intended broadly to reflect members' relative size in the world economy: the larger a country's economy in terms of output, and the larger and more variable its trade, the higher its quota tends to be. The United States of America, the world's largest economy, contributes most to the IMF, 17.5 percent of total quotas · Countries pay 25 percent of their quota subscriptions in Special Drawing Rights or major currencies, such as U.S. dollars or Japanese yen; the IMF can call on the remainder, payable in the member's own currency, to be made available for lending as needed. · If necessary, the IMF may borrow to supplement the resources available from its quotas. The IMF has two sets of standing arrangements to borrow if needed to cope with any threat to the international monetary system: · The General Arrangements to Borrow (GAB), set up in 1962, which has 11 participants (the governments or central banks of the Group of Ten industrialized countries and Switzerland), and · The New Arrangements to Borrow (NAB), introduced in 1997, with 25 participating countries and institutions. Under the two arrangements combined, the IMF has up to SDR 34 billion (about $50 billion) available to borrow. Structure of IMF · The Board of Governors, on which all member countries are represented · Key policy issues relating to the international monetary system are considered twice-yearly in a committee of Governors called the International Monetary and Financial Committee · The Executive Board consists of 24 Executive Directors, with the Managing Director as chairman. The Executive Board usually meets three times a week, in full-day sessions, and more often if needed · The IMF's five largest shareholders —the United States, Japan, Germany, France, and the United Kingdom · Along with China, Russia, and Saudi Arabia, have their own seats on the Board. The other 16 Executive Directors are elected for two-year terms by groups of countries, known as constituencies. · A joint committee of the Boards of Governors of the IMF and World Bank called the Development Committee advises and reports to the Governors on development policy and other matters of concern to developing countries. · The Executive Board selects the Managing Director, who besides serving as the chairman of the Board, is the chief of the IMF staff and conducts the business of the IMF under the direction of the Executive Board. IMF LENDING A core responsibility of the IMF is to provide loans to countries experiencing balance-of-payments problems. This financial assistance enables countries to rebuild their international reserves, stabilize their currencies, continue paying for imports, and restore conditions for strong econom...