What is an international fund. International Monetary Fund. IMF and Russia. History of foundation and development of the Fund

25.11.2019

The International Monetary Fund, the IMF is primarily a specialized agency of the United Nations (UN), headquartered in Washington DC, USA. It is worth noting that although the IMF was created with the support of the UN, it is an independent organization.

The International Monetary Fund was created relatively recently - at the Bretton Woods Conference, on monetary and financial issues on July 22, 1944, the basis of the agreement was developed ( IMF charter).

The most significant contribution to the development of the concept of the IMF was made by John Maynard Keynes, who led the British delegation, and Harry Dexter White, a senior official of the US Treasury. The final version of the agreement was signed by the first 29 states on December 27, 1945 - the official date of the creation of the IMF. The IMF began operations on March 1, 1947 as part of the Bretton Woods system. In the same year, France took the first loan. Currently, the IMF unites 187 states, and 2,500 people from 133 countries work in its structures.

The IMF provides short - and medium-term loans with a deficit in the balance of payments of the state. The provision of loans is usually accompanied by a set of conditions and recommendations aimed at improving the situation.

The policy and recommendations of the IMF in relation to developing countries have been repeatedly criticized, the essence of which is that the implementation of the recommendations and conditions is ultimately aimed not at increasing the independence, stability and development of the national economy of the state, but only tying it to international financial flows.

international monetary fund lending

The Fundamental Purposes and Functions of the IMF and the Structure of Governance

The main objectives of the International Monetary Fund are:

1. "the need to promote international cooperation in the monetary and financial sphere";

2. "promoting the expansion and balanced growth of international trade" in the interests of developing productive resources, achieving a high level of employment and real incomes of member states;

3. "Ensuring the stability of currencies, maintaining orderly monetary relations among member states" and striving to prevent "depreciation of currencies in order to obtain competitive advantages";

4. assistance in the creation of a multilateral system of settlements between member states, as well as in the elimination of currency restrictions;

5. temporary provision of foreign exchange funds to Member States, which would enable them to "correct imbalances in their balance of payments".

The main functions of the IMF are:

1. promoting international cooperation in monetary policy

2. expansion of world trade

3. lending

4. stabilization of monetary exchange rates

5. advising debtor countries

6. development of international financial statistics standards

7. collection and publication of international financial statistics

The supreme governing body of the IMF is the Board of Governors, in which each member country is represented by a governor and his deputy. Usually these are finance ministers or central bankers. The Council is in charge of resolving key issues of the Fund's activities: amending the Articles of the Agreement, admitting and expelling member countries, determining and revising their shares in the capital, and electing executive directors. The Governors meet in session, usually once a year, but may meet and vote by mail at any time.

The authorized capital is about 217 billion SDR (special unit for the right to draw) (as of January 2011, 1 SDR was equal to approximately 1.5 US dollars). It is formed by contributions from member countries, each of which usually pays approximately 25% of its quota in SDRs or in the currency of other members, and the remaining 75% in its national currency. Based on the size of quotas, votes are distributed among member countries in the governing bodies of the IMF.

The largest number of votes in the IMF (as of June 16, 2010) are: the United States - 17.8%; Germany - 5.99%; Japan - 6.13%; UK - 4.95%; France - 4.95%; Saudi Arabia - 3.22%; Italy - 4.18%; Russia - 2.74%. The share of 15 EU member countries is 30.3%, 29 member countries of the Organization for Economic Cooperation and Development have a total of 60.35% of the votes in the IMF. The share of other countries, which make up over 84% of the number of members of the Fund, accounts for only 39.75%.

The IMF operates the principle of "weighted" number of votes: the ability of member countries to influence the activities of the Fund by voting is determined by their share in its capital. Each state has 250 "basic" votes, regardless of the size of its contribution to the capital, and an additional one vote for every 100 thousand SDRs of the amount of this contribution. In the event that a country bought (sold) the SDRs it received during the initial issue of SDRs, the number of its votes increases (reduces) by 1 for every 400,000 purchased (sold) SDRs. This correction is carried out by no more than 1/4 of the number of votes received for the country's contribution to the Fund's capital. This arrangement ensures a decisive majority of votes for the leading states.

Decisions in the Board of Governors are usually taken by a simple majority (at least half) of the votes, and on important issues of an operational or strategic nature - by a "special majority" (respectively 70 or 85% of the votes of the member countries).

Despite some reduction in the share of US and EU votes, they can still veto key decisions of the Fund, the adoption of which requires a maximum majority (85%). This means that the United States, together with the leading Western states, has the ability to exercise control over the decision-making process in the IMF and direct its activities based on their own interests. With coordinated action, developing countries are also in a position to avoid making decisions that do not suit them. However, reaching agreement is difficult for a large number of heterogeneous countries, so the intention was expressed to "enhance the ability of developing countries and countries with economies in transition to participate more effectively in the decision-making mechanism in the IMF."

The International Monetary and Financial Committee plays a significant role in the organizational structure of the IMF. It consists of 24 IMF governors, including from Russia, and meets in its sessions twice a year. This committee is an advisory body of the Board of Governors and does not have the power to make policy decisions. However, it performs important functions:

ь guides the activities of the Executive Council;

l develops strategic decisions related to the functioning of the world monetary system and the activities of the IMF;

b Submits proposals to the Board of Governors to amend the Articles of Agreement of the IMF.

A similar role is also played by the Development Committee - the Joint Ministerial Committee of the Boards of Governors of the WB and the Fund.

The Board of Governors delegates many of its powers to the Executive Board, a directorate that is responsible for the conduct of the affairs of the IMF, which includes a wide range of political, operational and administrative matters, in particular the provision of loans to member countries and the oversight of their policies. exchange rate.

The IMF's Executive Board elects for a five-year term a Managing Director who leads the Fund's staff (as of March 2009, about 2,478 people from 143 countries). He must be a representative of one of the European countries. Managing Director (since November 2007) - Dominique Strauss-Kahn (France), his first deputy - John Lipsky (USA).

Head of the IMF Resident Mission in Russia - Neven Mates.

Manager. Elected by the Executive Board, the IMF Governor chairs the Executive Board and is the organization's head of staff. Under the direction of the Executive Board, the Governor is responsible for the day-to-day operations of the IMF. The Governor is appointed for five years and may be re-elected for a subsequent term.

Staff. The Articles of Agreement require staff appointed to the IMF to demonstrate the highest standards of professionalism and technical competence, and reflect the international nature of the institution. Approximately 125 nations are represented among the organization's 2,300 employees.

The International Monetary Fund (IMF) is a special agency of the United Nations, established by 184 states. The IMF was created on December 27, 1945 after the signing by 28 states of an agreement developed at the UN Monetary and Financial Conference in Bretton Woods on July 22, 1944. In 1947, the foundation began its activities. The headquarters of the IMF is located in Washington, USA.

The IMF is an international organization that unites 184 states. The fund was created to ensure international cooperation in the monetary sphere and maintain the stability of exchange rates; supporting economic development and employment levels in countries around the world; and providing additional funds to the economy of a particular state in the short term. Since the IMF was created, its purposes have not changed, but its functions - which include monitoring the state of the economy, financial and technical assistance to countries - have evolved significantly to meet the changing goals of the member countries that are the subjects of the world economy.

IMF Membership Growth, 1945-2003
(number of countries)

The objectives of the International Monetary Fund are:

To ensure international cooperation in the monetary sphere through a network of permanent institutions that advise and take part in solving many financial problems.
To promote the development and balanced growth of international trade, and to contribute to the promotion and maintenance of a high level of employment and real income, and to develop the productive forces in all member countries of the Fund as the primary objects of economic policy.
Ensure the stability of exchange rates, maintain correct exchange agreements between participants and avoid various discriminations in this area.
Help build a multilateral payment system for current transactions between fund member countries and to remove restrictions on foreign exchange that hinder the growth of international trade.
Provide support to member states of the fund by providing funds to the fund to solve temporary problems in the economy.
In line with the above, shorten the duration and reduce the degree of imbalance in the international balances of the accounts of its members.

Role of the International Monetary Fund

The IMF helps countries develop their economies and implement selected economic projects through three main functions - lending, technical assistance and monitoring.

Providing loans. The IMF provides financial assistance to low-income countries experiencing balance of payments problems through the Poverty Reduction and Growth Facility (PRGF) and, for temporary needs arising from external shocks, the Exogenous Shocks Facility (ESF). The interest rate on PRGF and ESF is concessional (only 0.5 percent) and loans are repaid over 10 years.

Other functions of the IMF:

promotion of international cooperation in monetary policy
expansion of world trade
stabilization of monetary exchange rates
advising debtor countries (debtors)
development of international financial statistics standards
collection and publication of international financial statistics

Main lending mechanisms

1. Reserve share. The first portion of foreign currency that a member country can purchase from the IMF within 25% of the quota was called "gold" before the Jamaica Agreement, and since 1978 - the reserve share (Reserve Tranche). The reserve share is defined as the excess of the quota of a member country over the amount in the account of the National Currency Fund of that country. If the IMF uses part of the national currency of a member country to provide credit to other countries, then the reserve share of such a country increases accordingly. The outstanding amount of loans made by a member country to the Fund under the NHS and NHA loan agreements constitutes its credit position. The reserve share and lending position together constitute the "reserve position" of an IMF member country.

2. Credit shares. Funds in foreign currency that can be acquired by a member country in excess of the reserve share (in case of its full use, the IMF's holdings in the country's currency reach 100% of the quota) are divided into four credit shares, or tranches (Credit Tranches), which make up 25% of the quota . Member countries' access to IMF credit resources within the framework of credit shares is limited: the amount of the country's currency in the IMF's assets cannot exceed 200% of its quota (including 75% of the quota paid by subscription). Thus, the maximum amount of credit that a country can receive from the Fund as a result of using the reserve and loan shares is 125% of its quota. However, the charter gives the IMF the right to suspend this restriction. On this basis, the Fund's resources in many cases are used in amounts exceeding the limit fixed in the statute. Therefore, the concept of "upper credit shares" (Upper Credit Tranches) began to mean not only 75% of the quota, as in the early period of the IMF, but amounts exceeding the first credit share.

3. Stand-by Arrangements (since 1952) provide a member country with a guarantee that, within a certain amount and for the duration of the arrangement, subject to agreed conditions, the country can freely receive foreign currency from the IMF in exchange for the national one. This practice of granting loans is the opening of a line of credit. If the use of the first credit share can be made in the form of a direct purchase of foreign currency after the approval of the request by the Fund, then the allocation of funds against the upper credit shares is usually carried out through arrangements with member countries on standby credits. From the 1950s to the mid-1970s, stand-by credit agreements had a term of up to a year, since 1977 - up to 18 months and even up to 3 years due to the increase in balance of payments deficits.

4. The Extended Fund Facility (since 1974) supplemented the reserve and credit shares. It is designed to provide loans for longer periods and in larger amounts in relation to quotas than under normal loan shares. The basis for a country's request to the IMF for a loan under extended lending is a serious imbalance in the balance of payments caused by adverse structural changes in production, trade or prices. Extended loans are usually provided for three years, if necessary - up to four years, in certain portions (tranches) at fixed intervals - once every six months, quarterly or (in some cases) monthly. The main purpose of stand-by and extended loans is to assist IMF member countries in implementing macroeconomic stabilization programs or structural reforms. The Fund requires the borrowing country to fulfill certain conditions, and the degree of their rigidity increases as you move from one credit share to another. Certain conditions must be met before obtaining a loan. The obligations of the borrowing country, which provide for the implementation of relevant financial and economic measures, are recorded in the "Letter of intent" or the Memorandum of Economic and Financial Policies sent to the IMF. The course of fulfillment of obligations by the country - the recipient of the loan is monitored by periodically evaluating the special target performance criteria provided for by the agreement. These criteria can be either quantitative, referring to certain macroeconomic indicators, or structural, reflecting institutional changes. If the IMF considers that a country uses a loan in contradiction with the goals of the Fund, does not fulfill its obligations, it may limit its lending, refuse to provide the next tranche. Thus, this mechanism allows the IMF to exert economic pressure on borrowing countries.

Unlike the World Bank, the IMF focuses on relatively short-term macroeconomic crises. The World Bank provides loans only to poor countries, the IMF can lend to any of its member countries that lacks foreign exchange to cover short-term financial obligations.

Structure of governing bodies

The authorized capital is about 217 billion SDRs (as of January 2008, 1 SDR was equal to about 1.5 US dollars). It is formed by contributions from member countries, each of which usually pays approximately 25% of its quota in SDRs or in the currency of other members, and the remaining 75% in its national currency. Based on the size of quotas, votes are distributed among member countries in the governing bodies of the IMF.

The Executive Board, which sets policy and is responsible for most decisions, consists of 24 executive directors. Directors are nominated by the eight countries with the largest quotas in the Fund - the United States, Japan, Germany, France, the United Kingdom, China, Russia and Saudi Arabia. The remaining 176 countries are organized into 16 groups, each of which elects an executive director. An example of such a group of countries is the unification of the countries of the former Central Asian republics of the USSR under the leadership of Switzerland, which was called Helvetistan. Often the groups are formed by countries with similar interests and usually from the same region, such as francophone Africa.

The largest number of votes in the IMF (as of June 16, 2006) are: USA - 17.08% (16.407% - 2011); Germany - 5.99%; Japan - 6.13% (6.46% - 2011); UK - 4.95%; France - 4.95%; Saudi Arabia - 3.22%; China - 2.94% (6.394% - 2011); Russia - 2.74%. The share of 15 EU member countries is 30.3%, 29 member countries of the Organization for Economic Cooperation and Development have a total of 60.35% of the votes in the IMF. The share of other countries, which make up over 84% of the number of members of the Fund, accounts for only 39.65%.

Decisions in the Board of Governors are usually taken by a simple majority (at least half) of the votes, and on important issues of an operational or strategic nature, by a “special majority” (respectively, 70 or 85% of the votes of the member countries). Despite some reduction in the share of US and EU votes, they can still veto key decisions of the Fund, the adoption of which requires a maximum majority (85%). This means that the United States, together with the leading Western states, has the ability to exercise control over the decision-making process in the IMF and direct its activities based on their own interests. With coordinated action, developing countries are also in a position to avoid the adoption of decisions that do not suit them. However, it is difficult for a large number of heterogeneous countries to achieve coherence. At a meeting of Fund leaders in April 2004, the intention was to "enhance the ability of developing countries and countries with economies in transition to participate more effectively in the IMF's decision-making mechanism."

An essential role in the organizational structure of the IMF is played by the International Monetary and Financial Committee (IMFC; International Monetary and Financial Committee). From 1974 until September 1999, its predecessor was the Interim Committee on the International Monetary System. It consists of 24 IMF governors, including from Russia, and meets in its sessions twice a year. This committee is an advisory body of the Board of Governors and does not have the power to make policy decisions. Nevertheless, it performs important functions: directs the activities of the Executive Council; develops strategic decisions related to the functioning of the world monetary system and the activities of the IMF; Submits proposals to the Board of Governors to amend the Articles of Agreement of the IMF. A similar role is also played by the Development Committee - the Joint Ministerial Committee of the Boards of Governors of the WB and the Fund (Joint IMF - World Bank Development Committee).

Board of Governors (1999) The Board of Governors delegates many of its powers to the Executive Board, that is, the directorate responsible for the conduct of the IMF's affairs, which includes a wide range of political, operational and administrative matters, in particular the provision of loans to member countries and overseeing their exchange rate policies.

The IMF's Executive Board elects for a five-year term a Managing Director who leads the Fund's staff (as of March 2009, about 2,478 people from 143 countries). As a rule, he represents one of the European countries. Managing Director (since July 5, 2011) - Christine Lagarde (France), her first deputy - John Lipsky (USA). Head of the IMF Resident Mission in Russia - Odd Per Brekk.

International Monetary Fund, IMF(eng. International Monetary Fund, IMF listen)) is a specialized agency of the United Nations, headquartered in Washington, USA.

The IMF operates the principle of "weighted" number of votes: the ability of member countries to influence the activities of the Fund by voting is determined by their share in its capital. Each state has 250 "basic" votes, regardless of the size of its contribution to the capital, and an additional one vote for every 100 thousand SDRs of the amount of this contribution. In the event that a country bought (sold) the SDRs it received during the initial issue of SDRs, the number of its votes increases (reduces) by 1 for every 400,000 purchased (sold) SDRs. This correction is carried out by no more than ¼ of the number of votes received for the country's contribution to the Fund's capital. This arrangement ensures a decisive majority of votes for the leading states.

An essential role in the organizational structure of the IMF is played by International Monetary and Financial Committee(IMFC; eng. International Monetary and Financial Committee). From 1974 until September 1999, its predecessor was the Interim Committee on the International Monetary System. It consists of 24 IMF governors, including from Russia, and meets in its sessions twice a year. This committee is an advisory body of the Board of Governors and does not have the power to make policy decisions. Nevertheless, it performs important functions: directs the activities of the Executive Council; develops strategic decisions related to the functioning of the world monetary system and the activities of the IMF; Submits proposals to the Board of Governors to amend the Articles of Agreement of the IMF. A similar role is also played by the Development Committee - the Joint Ministerial Committee of the Boards of Governors of the WB and the Fund (Joint IMF - World Bank Development Committee).

The Board of Governors delegates many of its powers Executive Council(eng. Executive board), that is, the directorate that is responsible for conducting the affairs of the IMF, including a wide range of political, operational and administrative issues, in particular the provision of loans to member countries and oversight of their exchange rate policies.

The IMF Executive Board elects for a five-year term managing director(Eng. Managing Director), who heads the staff of the Fund (as of March 2009 - about 2478 people from 143 countries). As a rule, he represents one of the European countries. Managing Director (since July 5, 2011) - Christine Lagarde (France), her first deputy - John Lipsky (USA).

Main lending mechanisms

1. reserve share. The first portion of foreign currency that a member country can purchase from the IMF within 25% of the quota was called "gold" before the Jamaica Agreement, and since 1978 - the reserve share (Reserve Tranche). The reserve share is defined as the excess of the quota of a member country over the amount in the account of the National Currency Fund of that country. If the IMF uses part of the national currency of a member country to provide credit to other countries, then the reserve share of such a country increases accordingly. The outstanding amount of loans made by a member country to the Fund under the NHS and NHA loan agreements constitutes its credit position. The reserve share and lending position together constitute the "reserve position" of an IMF member country.

2. credit shares. Funds in foreign currency that can be acquired by a member country in excess of the reserve share (in case of its full use, the IMF's holdings in the country's currency reach 100% of the quota) are divided into four credit shares, or tranches (Credit Tranches), which make up 25% of the quota . Member countries' access to IMF credit resources within the framework of credit shares is limited: the amount of the country's currency in the IMF's assets cannot exceed 200% of its quota (including 75% of the quota paid by subscription). Thus, the maximum amount of credit that a country can receive from the Fund as a result of using the reserve and loan shares is 125% of its quota. However, the charter gives the IMF the right to suspend this restriction. On this basis, the Fund's resources in many cases are used in amounts exceeding the limit fixed in the statute. Therefore, the concept of "upper credit shares" (Upper Credit Tranches) began to mean not only 75% of the quota, as in the early period of the IMF, but amounts exceeding the first credit share.

3. Stand-by arrangements for stand-by loans(since 1952) provide a member country with a guarantee that, within a certain amount and during the term of the agreement, subject to the agreed conditions, the country can freely receive foreign currency from the IMF in exchange for national. This practice of granting loans is the opening of a line of credit. If the use of the first credit share can be made in the form of a direct purchase of foreign currency after the approval of the request by the Fund, then the allocation of funds against the upper credit shares is usually carried out through arrangements with member countries on standby credits. From the 1950s to the mid-1970s, stand-by credit agreements had a term of up to a year, since 1977 - up to 18 months and even up to 3 years due to the increase in balance of payments deficits.

4. Extended Lending Facility(Eng. Extended Fund Facility) (since 1974) supplemented the reserve and credit shares. It is designed to provide loans for longer periods and in larger amounts in relation to quotas than under normal loan shares. The basis for a country's request to the IMF for a loan under extended lending is a serious imbalance in the balance of payments caused by adverse structural changes in production, trade or prices. Extended loans are usually provided for three years, if necessary - up to four years, in certain portions (tranches) at fixed intervals - once every six months, quarterly or (in some cases) monthly. The main purpose of stand-by and extended loans is to assist IMF member countries in implementing macroeconomic stabilization programs or structural reforms. The Fund requires the borrowing country to fulfill certain conditions, and the degree of their rigidity increases as you move from one credit share to another. Certain conditions must be met before obtaining a loan. The obligations of the borrowing country, which provide for the implementation of relevant financial and economic measures, are recorded in the "Letter of intent" (Letter of intent) or Memorandum of Economic and Financial Policies sent to the IMF. The course of fulfillment of obligations by the country - the recipient of the loan is monitored by periodically evaluating the special target performance criteria provided for by the agreement. These criteria can be either quantitative, referring to certain macroeconomic indicators, or structural, reflecting institutional changes. If the IMF considers that a country uses a loan in contradiction with the goals of the Fund, does not fulfill its obligations, it may limit its lending, refuse to provide the next tranche. Thus, this mechanism allows the IMF to exert economic pressure on borrowing countries.

It should be borne in mind that votes in making decisions on the Fund's actions are distributed in proportion to contributions. To approve the Fund's decisions, 85% of the votes are required. The US has about 17% of all votes. This is not enough for independent decision-making, but allows you to block any decision of the Foundation. The US Senate may pass a bill that would prohibit the International Monetary Fund from doing certain things, such as making loans to countries. As the Chinese economist Professor Shi Jianxun points out, the redistribution of quotas does not at all change the basic framework of the organization and the balance of power in it, the US share remains the same, they have the right to veto: "The United States, as before, leads the order of the IMF" .

The IMF provides loans with a number of requirements - freedom of movement of capital, privatization (including natural monopolies - rail transport and utilities), minimization or even elimination of government spending on social programs - education, health care, cheaper housing, public transport, etc. P.; refusal to protect the environment; reduction of salaries, restriction of the rights of workers; increased tax pressure on the poor, etc. [ ]

According to Michel Chosudovsky, [ ]

IMF-sponsored programs since then have consistently continued to destroy the industrial sector and have gradually dismantled the Yugoslav welfare state. The restructuring agreements increased the external debt and provided the mandate for the devaluation of the Yugoslav currency, which hit hard on Yugoslav living standards. This initial round of restructuring laid the foundations for it. During the 1980s, the IMF periodically prescribed further doses of its bitter "economic therapy" while the Yugoslav economy slowly slipped into a coma. Industrial production fell by 10%

International Monetary Fund, IMF International Monetary Fund, IMF listen)) is a specialized agency of the United Nations, headquartered in Washington, USA.

At the Bretton Woods Monetary Conference of the United Nations on July 22, 1944, the basis of the agreement was developed ( IMF charter). The most significant contribution to the development of the concept of the IMF was made by John Maynard Keynes, who led the British delegation, and Harry Dexter White, a senior official of the US Treasury. The final version of the agreement was signed by the first 29 states on December 27, 1945 - the official date of the creation of the IMF. The IMF began operations on March 1, 1947 as part of the Bretton Woods system. In the same year, France took the first loan. Currently, the IMF unites 188 states, and 2,500 people from 133 countries work in its structures.

The IMF provides short- and medium-term loans with a deficit in the balance of payments of the state. The granting of loans is usually accompanied by a set of conditions and recommendations.

In accordance with Article 1 of the agreement, the IMF sets itself the following goals:

Promote the development of international cooperation in the monetary and financial sphere within the framework of a permanent institution that provides a mechanism for consultation and joint work on international monetary and financial problems.
To promote the expansion and balanced growth of international trade and thereby favor the achievement and maintenance of a high level of employment and real incomes, as well as the development of the productive resources of all member states, considering these actions as the priorities of economic policy.
Maintain currency stability and an orderly exchange regime among member states, and avoid currency devaluations in order to gain a competitive edge.
To assist in the establishment of a multilateral system of settlements for current transactions between member states, as well as in the removal of foreign exchange restrictions that impede the growth of world trade.
By temporarily providing the general resources of the fund to member countries, subject to adequate safeguards, to create a state of confidence in them, thus ensuring that imbalances in their balance of payments can be corrected without resorting to measures that could harm national or international welfare.
In line with the foregoing, shorten the duration of imbalances in the external balance of payments of member states, as well as reduce the scale of these violations.

Structure of governing bodies

The supreme governing body of the IMF is Board of Governors(English) Board of Governors), in which each member country is represented by a governor and his deputy. Usually these are finance ministers or central bankers. The Council is in charge of resolving key issues of the Fund's activities: amending the Articles of the Agreement, admitting and expelling member countries, determining and revising their shares in the capital, and electing executive directors. The Governors meet in session, usually once a year, but may meet and vote by mail at any time. The authorized capital is about 217 billion SDRs. SDR (English Special Drawing Rights, SDR, SDRs) or Special Drawing Rights (SDR), is an artificial reserve and means of payment issued by the IMF. As of January 2008, 1 SDR was equal to approximately 1.5 US dollars. It is formed by contributions from member countries, each of which usually pays approximately 25% of its quota in SDRs or in the currency of other members, and the remaining 75% in its national currency. Based on the size of quotas, votes are distributed among member countries in the governing bodies of the IMF.

The Executive Board, which sets policy and is responsible for most decisions, consists of 24 executive directors. Directors are nominated by the eight countries with the largest quotas in the Fund - the United States, Japan, Germany, France, the United Kingdom, China, Russia and Saudi Arabia. The remaining 176 countries are organized into 16 groups, each of which elects an executive director. An example of such a group of countries is the unification of the countries of the former Central Asian republics of the USSR under the leadership of Switzerland, which was called Helvetistan. Often the groups are formed by countries with similar interests and usually from the same region, such as francophone Africa.

The largest number of votes in the IMF (as of June 16, 2006]) are: USA - 17.08% (16.407% - 2011); Germany - 5.99%; Japan - 6.13% (6.46% - 2011); UK - 4.95%; France - 4.95%; Saudi Arabia - 3.22%; China - 2.94% (6.394% - 2011); Russia - 2.74%. The share of 15 EU member countries is 30.3%, 29 member countries of the Organization for Economic Cooperation and Development have a total of 60.35% of the votes in the IMF. The rest of the countries, which make up over 84% of the number of members of the Fund, account for only 39.65

The IMF operates the principle of "weighted" number of votes: the ability of member countries to influence the activities of the Fund by voting is determined by their share in its capital. Each state has 250 "basic" votes, regardless of the size of its contribution to the capital, and an additional one vote for every 100 thousand SDRs of the amount of this contribution. In the event that a country bought (sold) the SDRs it received during the initial issue of SDRs, the number of its votes increases (reduces) by 1 for every 400,000 purchased (sold) SDRs. This correction is carried out no more than? from the number of votes received for the country's contribution to the Fund's capital. This arrangement ensures a decisive majority of votes for the leading states.

Main lending mechanisms

reserve share. The first portion of foreign currency that a member country can purchase from the IMF within 25% of the quota was called "gold" before the Jamaica Agreement, and since 1978 - the reserve share (Reserve Tranche). The reserve share is defined as the excess of the quota of a member country over the amount in the account of the National Currency Fund of that country. If the IMF uses part of the national currency of a member country to provide credit to other countries, then the reserve share of such a country increases accordingly. The outstanding amount of loans made by a member country to the Fund under the NHS and NHA loan agreements constitutes its credit position. The reserve share and lending position together constitute the "reserve position" of an IMF member country.
credit shares. Funds in foreign currency that can be acquired by a member country in excess of the reserve share (in case of its full use, the IMF's holdings in the country's currency reach 100% of the quota) are divided into four credit shares, or tranches (Credit Tranches), which make up 25% of the quota . Member countries' access to IMF credit resources within the framework of credit shares is limited: the amount of the country's currency in the IMF's assets cannot exceed 200% of its quota (including 75% of the quota paid by subscription). Thus, the maximum amount of credit that a country can receive from the Fund as a result of using the reserve and loan shares is 125% of its quota. However, the charter gives the IMF the right to suspend this restriction. On this basis, the Fund's resources in many cases are used in amounts exceeding the limit fixed in the statute. Therefore, the concept of "upper credit shares" (Upper Credit Tranches) began to mean not only 75% of the quota, as in the early period of the IMF, but amounts exceeding the first credit share.
Stand-By Arrangements Stand-by Arrangements) (since 1952) provide a member country with a guarantee that, within a certain amount and during the term of the agreement, subject to the agreed conditions, the country can freely receive foreign currency from the IMF in exchange for national. This practice of granting loans is the opening of a line of credit. If the use of the first credit share can be made in the form of a direct purchase of foreign currency after the approval of the request by the Fund, then the allocation of funds against the upper credit shares is usually carried out through arrangements with member countries on standby credits. From the 1950s to the mid-1970s, stand-by credit agreements had a term of up to a year, since 1977 - up to 18 months and even up to 3 years due to the increase in balance of payments deficits.
Extended Lending Facility(English) Extended Fund Facility) (since 1974) supplemented the reserve and credit shares. It is designed to provide loans for longer periods and in larger amounts in relation to quotas than under normal loan shares. The basis for a country's request to the IMF for a loan under extended lending is a serious imbalance in the balance of payments caused by adverse structural changes in production, trade or prices. Extended loans are usually provided for three years, if necessary - up to four years, in certain portions (tranches) at fixed intervals - once every six months, quarterly or (in some cases) monthly. The main purpose of stand-by and extended loans is to assist IMF member countries in implementing macroeconomic stabilization programs or structural reforms. The Fund requires the borrowing country to fulfill certain conditions, and the degree of their rigidity increases as you move from one credit share to another. Certain conditions must be met before obtaining a loan. The obligations of the borrowing country, which provide for the implementation of relevant financial and economic measures, are recorded in the "Letter of intent" or the Memorandum of Economic and Financial Policies sent to the IMF. The course of fulfillment of obligations by the country - the recipient of the loan is monitored by periodically evaluating the special target performance criteria provided for by the agreement. These criteria can be either quantitative, referring to certain macroeconomic indicators, or structural, reflecting institutional changes. If the IMF considers that a country uses a loan in contradiction with the goals of the Fund, does not fulfill its obligations, it may limit its lending, refuse to provide the next tranche. Thus, this mechanism allows the IMF to exert economic pressure on borrowing countries.

The International Monetary Fund (IMF) was established in 1944 at a conference in Bretton Woods in the United States. Its goals were originally declared as follows: promoting international cooperation in the field of finance, expanding and growing trade, ensuring the stability of currencies, assisting in settlements between member countries and providing them with funds in order to correct imbalances in the balance of payments. However, in practice, the Fund's activities are reduced to acquisitiveness for a minority (countries and which, among other organizations, controls the IMF. Have the IMF loans, or the IMF (International Monetary Fund decoding) helped the needy states? How does the Fund's work affect the global economy?

IMF: deciphering the concept, functions and tasks

IMF stands for International Monetary Fund, IMF (abbreviation decoding) in the Russian version looks like this: International Monetary Fund. This is designed to promote monetary cooperation on the basis of advising its members and allocating loans to them.

The objective of the Fund is to secure a solid parity of currencies. To this end, the Member States have established them in gold and US dollars, agreeing not to change them by more than ten percent without the consent of the Fund and not to deviate from this balance when carrying out transactions by more than one percent.

History of foundation and development of the Fund

In 1944, at the Bretton Woods conference in the United States, representatives of forty-four countries decided to create a common base for economic cooperation in order to avoid the devaluation that followed the Great Depression in the thirties, as well as to restore the financial system between states after the war. The following year, based on the results of the conference, the IMF was created.

The USSR also took an active part in the conference and signed the Act on the establishment of the organization, but subsequently did not ratify it and did not participate in the activities. But in the 1990s, after the collapse of the Soviet Union, Russia and other former Soviet republics joined the IMF.

In 1999, the IMF already included 182 countries.

Governing bodies, structure and participating countries

The headquarters of the UN specialized organization - the IMF - is located in Washington. The governing body of the International Monetary Fund is the Board of Governors. It includes the actual manager and deputy from each member country of the Fund.

The Executive Board consists of 24 directors representing groups of countries or individual participating countries. At the same time, the managing director is always a European, and his first deputy is an American.

The authorized capital is formed at the expense of contributions from states. Currently, the IMF includes 188 countries. Based on the size of the paid quotas, their votes are distributed among the countries.

IMF data show that the largest number of votes belongs to the United States (17.8%), Japan (6.13%), Germany (5.99%), Great Britain and France (4.95% each), Saudi Arabia (3 .22%), Italy (4.18%) and Russia (2.74%). Thus, the US, as having the most votes, is the only country that has the most important issues discussed in the IMF. And many European countries (and not only them) simply vote in the same way as the United States of America.

The role of the Fund in the global economy

The IMF constantly monitors the financial and monetary policies of member countries and the state of the economy around the world. To this end, consultations are held every year with government organizations regarding exchange rates. On the other hand, member states should consult with the Fund on macroeconomic matters.

The IMF provides loans to countries in need, offering countries that they can use for a variety of purposes.

In the first twenty years of its existence, the Fund gave loans mainly to developed countries, but then this activity was reoriented to developing countries. It is interesting that from about the same time, the neo-colonial system in the world began its formation.

Conditions for countries to receive a loan from the IMF

In order for the member states of the organization to receive a loan from the IMF, they must fulfill a number of political and economic conditions.

This trend was formed in the eighties of the twentieth century, and over time only continues to tighten.

The IMF Bank requires the implementation of programs that, in fact, lead not to the country's exit from the crisis, but to the curtailment of investments, the cessation of economic growth and the deterioration of citizens in general.

It is noteworthy that in 2007 there was a severe crisis of the IMF organization. The deciphering of the 2008 global economic downturn is said to have been its consequence. No one wanted to take loans from the organization, and those countries that had received them earlier sought to repay their debts ahead of schedule.

But there was a global crisis, everything fell into place, and even more. The IMF has tripled its resources as a result and has an even greater impact on the global economy.

What is an international fund. International Monetary Fund. IMF and Russia. History of foundation and development of the Fund