International Monetary Fund (IMF)
- International Monetary Fund (IMF) is a specialised UN Agency conceived in 1944 at United Nations Bretton Woods Conference.
- India is one of the founding member of the IMF.
- It monitors the economic and financial policies of its member countries.
- It provides policy advice to nations for the promotion of international financial stability and monetary cooperation.
- It also provides financial support to countries hit by crisis or as precautionary financing to help prevent and insure against crisis.
Some important lending facilities of the International Monetary Fund (IMF)
- Stand-By Arrangement: for countries’ external financing needs and to support their adjustment policies with short-term financing.
- Flexible Credit Line(FCL): for crisis-prevention and crisis-mitigation lending for countries with very strong policy frameworks.
- Standby Credit Facility: to provide financial assistance to low-income countries (LICs) with short-term BoP needs.
- Extended Credit Facility for countries with protracted BoP problems.
- Precautionary and Liquidity Line: for countries with sound economic fundamentals but with some remaining vulnerabilities that preclude them from using FCL.
- The IMF announced that it will provide Sri Lanka a loan of about USD 2.9 billion over a four-year period to help the island nation overcome the unprecedented economic turmoil.