International Monetary Fund message. IMF: transcript. Loan conditions

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

On July 22, 1944, the basis of the agreement was developed at the United Nations on monetary and financial issues ( IMF charter). The most significant contribution to the development of the concept of the IMF was made by the head of the British delegation, and Harry Dexter White is a senior official at the US Department of the 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 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 balance of payments deficit but the states. The granting of loans is usually accompanied by a set of conditions and recommendations.

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 at linking it to international financial flows.

Objectives of the IMF International Monetary Fund

The International Monetary Fund of the IMF sets itself the following goals:

1. 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.
2. 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.
3. Maintain stability and orderliness currency regime among member states, and avoid currencies in order to gain a competitive advantage.
4. 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.
5. By temporarily providing the general resources of the Fund to Member States, subject to adequate guarantees, to create a state of confidence in them, thereby enabling them to correct imbalances in their balance of payments without the application of measures that could harm the well-being at the national or international level.
6. 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.

Purpose and role of the IMF:

Main Functions of the IMF International Monetary Fund

• Promoting international cooperation in monetary policy;
• Expansion of world trade;
• Lending;
• Stabilization of monetary exchange rates;
• Advising debtor countries (debtors);
• Development of international financial statistics standards;
• Collection and publication of international financial statistics.

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Organization of the IMF

The International Monetary Fund, IMF (International Monetary Fund, IMF), like the International Bank for Reconstruction and Development, IBRD (later the World Bank), is a Bretton Woods international organization. The IMF and IBRD formally belong to the specialized agencies of the UN, but from the very beginning of their activity they rejected the coordinating and leading role of the UN, referring to the complete independence of their financial sources.

The creation of these two structures was initiated by the Council on Foreign Relations, one of the most influential semi-secret organizations traditionally associated with the implementation of the mondialist project.

The task of creating such structures matured as the end of the Second World War and the collapse of the colonial system approached. The question of the formation of a post-war international monetary and financial system and the creation of appropriate international institutions, in particular an interstate organization that would be designed to regulate currency and settlement relations between countries, became topical. The US bankers were especially persistent in this.

Plans for the creation of a special body to "regularize" currency and settlement relations were developed by the United States and Great Britain. In the American plan, it was proposed to establish a "United Nations Stabilization Fund", the member states of which would have to undertake obligations not to change, without the consent of the Fund, the exchange rates and parities of their currencies, expressed in gold and a special monetary unit, not to establish currency restrictions on current operations and not enter into any bilateral ("discriminatory") clearing and payment agreements. In turn, the Fund would provide them with short-term loans in foreign currency to cover current balance of payments deficits.

This plan was beneficial to the United States - an economically powerful power, with a higher competitiveness of goods compared to other countries and a stable active balance of payments at that time.

An alternative English plan, developed by the famous economist J. M. Keynes, envisaged the creation of an "international clearing union" - a credit and settlement center designed to carry out international settlements with the help of a special supranational currency ("bancor") and ensure balance in payments, especially between the United States and all other states. Within the framework of this union, it was supposed to preserve closed currency groupings, in particular the sterling zone. The aim of the plan, designed to preserve the position of Great Britain in the countries of the British Empire, was to strengthen its monetary and financial positions largely at the expense of American financial resources and with minimal concessions to the US ruling circles in matters of monetary policy.

Both plans were considered at the Monetary and Financial Conference of the United Nations, held in Bretton Woods (USA) from July 1 to July 22, 1944. Representatives of 44 states took part in the conference. The struggle that unfolded at the conference ended in the defeat of Great Britain.

The final act of the conference included the Articles of Agreement (charter) on the International Monetary Fund and on the International Bank for Reconstruction and Development. December 27, 1945 The Articles of Agreement on the International Monetary Fund officially entered into force. In practice, the IMF began operations on March 1, 1947.

The money for the creation of this supra-governmental organization came from J.P. Morgan, J.D. Rockefeller, P. Warburg, J. Schiff and other "international bankers".

The USSR took part in the Bretton Woods conference, but did not ratify the Articles of Agreement on the IMF.

IMF activities

The IMF is intended to regulate the monetary and credit relations of member states and provide short- and medium-term loans in foreign currency. The International Monetary Fund provides most of its loans in US dollars. During its existence, the IMF has become the main supranational body for regulating international monetary and financial relations. The seat of the governing bodies of the IMF is Washington (USA). This is quite symbolic - in the future it will be seen that the IMF is almost completely controlled by the United States and the countries of the Western alliance and, accordingly, in terms of management and operational terms - by the FRS. It is no coincidence, therefore, that the real benefit from the activities of the IMF is also received by these actors and, first of all, by the “club of beneficiaries” mentioned above.

The official objectives of the IMF are as follows:

• “to promote international cooperation in the monetary and financial sphere”;
• "to promote 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;
• “ensure the stability of currencies, maintain orderly monetary relations among member states and prevent the depreciation of currencies in order to obtain competitive advantages”;
• assist in the creation of a multilateral system of settlements between member states, as well as in the elimination of currency restrictions;
• provide temporary foreign exchange funds to member states that would enable them to "correct imbalances in their balance of payments".

However, based on the facts characterizing the results of the IMF's activities throughout its history, a different, real picture of its goals is reconstructed. They again allow us to talk about the system of global money-grubbing in favor of a minority that controls the World Monetary Fund.

As of May 25, 2011, 187 states are members of the IMF. Each country has a quota expressed in SDRs. The quota determines the amount of capital subscriptions, the possibilities of using the resources of the fund and the amount of SDRs received by the member state at their next distribution. The capital of the International Monetary Fund has steadily increased since its inception, with the quotas of the most economically developed member countries increasing especially rapidly (Figure 6.3).

The largest quotas in the IMF are the USA (42122.4 million SDRs), Japan (15628.5 million SDRs) and Germany (14565.5 million SDRs), the smallest - Tuvalu (1.8 million SDRs). The IMF operates the principle of a "weighted" number of votes, when decisions are made not by a majority of equal votes, but by the largest "donors" (Fig. 6.4).

Together, the US and Western alliance countries have more than 50% of the vote against a few percent of China, India, Russia, Latin American or Islamic countries. From which it is obvious that the former have a monopoly on decision-making, i.e. the IMF, like the Fed, is controlled by these countries. When critical strategic issues are raised, including reform of the IMF itself, only the United States has a veto.

The United States, along with other developed countries, has a simple majority of votes in the IMF. For the past 65 years, the countries of Europe and other economically prosperous countries have always voted in solidarity with the United States. Thus, it becomes clear in whose interests the IMF functions and by whom it implements its geopolitical goals.

Requirements of the Articles of Agreement (Charter) of the IMF/Members of the IMF

Joining the IMF necessarily requires the country to comply with the rules governing its foreign economic relations. The Articles of Agreement set out the universal obligations of member states. The statutory requirements of the IMF are aimed primarily at the liberalization of foreign economic activity, in particular, the monetary and financial sphere. It is obvious that the liberalization of the external economies of developing countries provides enormous advantages to economically developed countries, opening up markets for their more competitive products. At the same time, the economies of developing countries, which, as a rule, need protectionist measures, suffer heavy losses, entire industries (not related to the sale of raw materials) become inefficient and die. In section 7.3, statistical generalization allows you to see such results.

The Charter requires member states to eliminate currency restrictions and maintain the convertibility of national currencies. Article VIII contains the obligations of member states not to impose, without the consent of the fund, restrictions on making payments on current operations of the balance of payments, and also to refrain from participating in discriminatory exchange agreements and not resorting to the practice of multiple exchange rates.

If in 1978 46 countries (1/3 of the IMF members) assumed obligations under Article VIII to prevent foreign exchange restrictions, then in April 2004 there were already 158 countries (more than 4/5 of the members).

In addition, the IMF charter obliges member countries to cooperate with the fund in the conduct of exchange rate policy. Although the Jamaican charter amendments gave countries the opportunity to choose any exchange rate regime, in practice the IMF is taking measures to establish a floating exchange rate for leading currencies and to link developing countries' currencies to them (primarily the US dollar), in particular, it introduces a currency board regime. ). It is interesting to note that China's return to a fixed exchange rate in 2008 (Figure 6.5), which caused strong displeasure of the IMF, is one of the explanations for why the global financial and economic crisis did not actually affect China.

Russia, in its “anti-crisis” financial and economic policy, followed the instructions of the IMF, and the impact of the crisis on the Russian economy turned out to be the heaviest not only in comparison with comparable countries of the world, but even in comparison with the vast majority of countries in the world.

The IMF exercises constant "strict surveillance" of the macroeconomic and monetary policies of member countries, as well as the state of the world economy.

The highest governing body in the IMF is the Board of Governors, in which each member country is represented by a governor (usually finance ministers or central bankers) and his deputy.

The Council is responsible for resolving key issues of the IMF's activities: amending the Articles of 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 Board of Governors delegates many of its powers to the Executive Board, i.e. the directorate, which is responsible for the conduct of the affairs of the IMF, which includes a wide range of political, operational and administrative matters, in particular lending to member countries and overseeing their policies in the area of ​​the exchange rate.

Since 1992, 24 executive directors have been represented on the executive board. Currently, out of 24 executive directors, 5 (21%) have an American education. The IMF's Executive Board elects a Managing Director for a five-year term, who leads the Fund's staff and serves as Chairman of the Executive Board. Among the 32 representatives of the top management of the IMF, 16 (50%) were educated in the United States, 1 worked in a transnational corporation, 1 taught at an American university.

The Managing Director of the IMF, according to informal arrangements, is always European, and his first deputy is always American.

Role of the IMF

The IMF provides loans in foreign currency to member countries for two purposes: first, to cover the balance of payments deficit, that is, in fact, to replenish official foreign exchange reserves; secondly, to support macroeconomic stabilization and restructuring of the economy, and hence - to lend to government budget expenditures.

A country in need of foreign exchange purchases or borrows foreign exchange or SDRs in exchange for an equivalent amount in domestic currency, which is credited to the IMF's account with its central bank as a depositary. At the same time, the IMF, as noted, provides loans mainly in US dollars.

During the first two decades of its activity (1947-1966), the IMF lent more to developed countries, which accounted for 56.4% of the amount of loans (including 41.5% of the funds received by the UK). Since the 1970s The IMF has refocused its activities on lending to developing countries (Figure 6.7).

It is interesting to note the time limit (the end of the 1970s), after which the world neo-colonial system actively began to form, replacing the collapsed colonial one. The main mechanisms for lending at the expense of the IMF resources are as follows.

reserve share. The first "portion" of foreign currency, which a member state can purchase from the IMF within 25% of the quota, was called "gold" before the Jamaica Agreement, and since 1978 - a reserve share (reserve tranche).

credit shares. Funds in foreign currency, which can be acquired by a member state in excess of the reserve share, are divided into four credit shares or tranches (credit tranches), each constituting 25% of the quota. Member states' 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 contributed by subscription). The maximum amount of credit that a country can receive from the IMF as a result of using the reserve and lending share is 125% of its quota.

Stand-by stand-by arrangements. This mechanism has been used since 1952. This practice of providing loans is the opening of a credit line. Since the 1950s and until the mid 1970s. standby loan agreements had a term of up to a year, from 1977 - up to 18 months, later - up to 3 years, due to an increase in balance of payments deficits.

Extended Fund Facility has been in use since 1974. This facility provides loans for even longer periods (for 3–4 years) in larger amounts. The use of stand-by loans and extended loans - the most common credit mechanisms before the global financial and economic crisis - is associated with the fulfillment by the borrowing state of certain conditions that require it to carry out certain financial and economic (and often political) measures. At the same time, the degree of rigidity of the conditions increases as you move from one credit share to another. Certain conditions must be met before obtaining a loan.

If the IMF considers that a country is using a loan "contrary to the goals of the fund", does not fulfill the requirements put forward, it can limit its further lending, refuse to provide the next loan tranche. This mechanism allows the IMF to effectively manage the borrowing country.

After the expiration of the established period, the borrowing state is obliged to repay the debt (“purchase” the national currency from the Fund) by returning the funds to it in SDRs or foreign currencies. Repayment of stand-by loans is made within 3 years and 3 months - 5 years from the date of receipt of each tranche, with extended lending - 4.5–10 years. In order to speed up the turnover of its capital, the IMF “encourages” faster repayment of loans received by debtors.

In addition to these standard facilities, the IMF has special lending facilities. They differ in purposes, conditions and cost of loans. Special lending facilities include the following. Compensatory lending facility, CFF (compensatory lending facility, CFF), is intended for lending to countries whose balance of payments deficit is caused by temporary and external reasons beyond their control. The Supplemental Reserve Facility (SRF) was introduced in December 1997 to provide funds to member countries experiencing "exceptional difficulties" with their balance of payments and in dire need of extended short-term lending due to a sudden loss of confidence in the currency, which causes the flight of capital from the country and a sharp reduction in its gold and foreign exchange reserves. It is assumed that this credit should be provided in cases where capital flight could pose a potential threat to the entire global monetary system.

Emergency assistance is designed to help overcome the deficit in the balance of payments caused by unpredictable natural disasters (since 1962) and crises resulting from civil unrest or military-political conflicts (since 1995). The emergency financing mechanism, EFM (since 1995) is a set of procedures that ensure the accelerated provision of loans by the fund to member countries in the event of an emergency crisis in international settlements that requires immediate assistance from the IMF.

The trade integration mechanism (TIM) was established in April 2004 in response to possible temporary negative consequences for a number of developing countries of the results of negotiations on further expansion of international trade liberalization within the framework of the Doha Round of the World Trade Organization. This mechanism is designed to provide financial support to countries whose balance of payments is deteriorating due to measures taken towards the liberalization of trade policies by other countries. However, IPTI is not an independent credit mechanism in the truest sense of the word, but a certain political setting.

Such a wide representation of the IMF's multi-purpose loans indicates that the fund offers borrowing countries its instruments in almost any situation.

For the poorest countries (those with GDP per capita below a set threshold) that are unable to pay the interest on conventional loans, the IMF provides concessional “aid” even though the share of concessional loans in total IMF lending is extremely small (Figure 6.8).

In addition, the implicit solvency guarantee provided by the IMF as a "bonus" along with the loan extends to more economically strong players in the international arena. Even a small IMF loan facilitates the country's access to the world loan capital market, helps to obtain loans from the governments of developed countries, central banks, the World Bank Group, the Bank for International Settlements, as well as from private commercial banks. Conversely, the refusal of the IMF to provide credit support to the country closes its access to the loan capital market. In such circumstances, countries are simply forced to turn to the IMF, even if they understand that the conditions put forward by the IMF will have deplorable consequences for the national economy.

On fig. 6.8 also shows that at the beginning of its activity, the IMF as a creditor played a rather modest role. However, since the 1970s there was a significant expansion of its lending activities.

Loan conditions

The granting of loans by the Fund to member states is connected with the fulfillment by them of certain political and economic conditions. This procedure was called the "conditionality" of loans. Officially, the IMF justifies this practice by the need to be sure that the borrowing countries will be able to repay their debts, ensuring the uninterrupted circulation of the Fund's resources. In fact, a mechanism for external management of the borrowing states has been built.

Since the IMF is dominated by monetarist, more broadly neoliberal, theoretical views, its “practical” stabilization programs usually include cutting government spending, including for social purposes, eliminating or reducing government subsidies for food, consumer goods and services (which leads to higher prices on these goods), increasing taxes on personal income (while reducing taxes on business), curbing growth or “freezing” wages, raising discount rates, limiting investment lending, liberalizing foreign economic relations, devaluing the national currency, followed by appreciation imported goods, etc.

The concept of economic policy, which is now the content of the conditions for obtaining IMF loans, was formed in the 1980s. in the circles of leading economists and business circles in the United States, as well as other Western countries, and is known as the "Washington Consensus".

It involves such structural changes in economic systems as the privatization of enterprises, the introduction of market pricing, and the liberalization of foreign economic activity. The IMF sees the main (if not the only) reason for the imbalance of the economy, the imbalance in international settlements of borrowing countries in the excess aggregate effective demand in the country, caused primarily by the state budget deficit and excessive expansion of the money supply.

The implementation of IMF programs most often leads to a curtailment of investments, a slowdown in economic growth, and an aggravation of social problems. This is due to the decline in real wages and living standards, the growth of unemployment, the redistribution of income in favor of the rich at the expense of less well-off groups of the population, and the growth of property differentiation.

As for the former socialist states, the obstacle to solving their macroeconomic problems, from the point of view of the IMF, are institutional and structural defects, therefore, when granting a loan, the fund focuses its requirements on the implementation of long-term structural changes in their economic and political systems.

The IMF is pursuing a very ideological policy. In fact, it finances the restructuring and inclusion of national economies in global speculative capital flows, i.e. their "binding" to the global financial metropolis.

With the expansion of credit operations in the 1980s. The IMF has taken a course on tightening their conditionality. It was then that the use of structural conditions in IMF programs became widespread, in the 1990s. it has increased significantly.

It is not surprising that the recommendations of the IMF to the recipient countries in most cases are directly opposite to the anti-crisis policy of developed countries (Table 6.1), which practice countercyclical measures - the drop in demand from households and businesses in them is compensated by increased government spending (benefits, subsidies, etc.). n) by expanding the budget deficit and increasing public debt. In the midst of the global financial and economic crisis in 2008, the IMF supported such a policy in the US, the EU and China, but prescribed a different “medicine” for its “patients”. "31 of the 41 IMF bailout agreements are pro-cyclical, that is, tighter monetary or fiscal policy," says a report from the Washington-based Center for Economic and Policy Research.

These double standards have always existed and many times led to large-scale crises in developing countries. The application of the IMF recommendations is focused on the formation of a monopolar model for the development of the world community.

The role of the IMF in regulating international monetary and financial relations

The IMF periodically makes changes to the world monetary system. First, the IMF acted as a conductor of the policy adopted by the West at the US initiative to demonetize gold and weaken its role in the global monetary system. Initially, the IMF Articles of Agreement gave gold an important place in its liquid resources. The first step towards eliminating gold from the post-war international monetary mechanism was the cessation by the United States in August 1971 of gold sales for dollars owned by the authorities of other countries. In 1978, the IMF charter was amended to prohibit member countries from using gold as a medium of expression for the value of their currencies; at the same time, the official dollar price of gold and the gold content of the SDR unit were abolished.

The International Monetary Fund has played a leading role in expanding the influence of transnational corporations and banks in countries with transitional and developing economies. Providing these countries in the 1990s. borrowed resources of the IMF to a large extent contributed to the activation of the activities of transnational corporations and banks in these countries.

In connection with the process of globalization of financial markets, the executive board in 1997 initiated the development of new amendments to the IMF Articles of Agreement in order to make the liberalization of capital movements a special goal of the IMF, to include them in its sphere of competence, i.e., to extend to them the requirement to abolish foreign exchange restrictions. The Interim Committee of the IMF adopted at its session in Hong Kong on September 21, 1997, a special statement on the liberalization of capital movements, calling on the executive board to expedite work on amendments in order to "add a new chapter to the Bretton Woods agreement." However, the development of the world currency and financial crises in 1997-1998. slowed down this process. Some countries have been forced to introduce capital controls. Nevertheless, the IMF maintains a principled approach to the removal of restrictions on the international movement of capital.

In the context of the analysis of the causes of the global financial crisis of 2008, it is also important to note that the International Monetary Fund relatively recently (since 1999) came to the conclusion that it is necessary to extend its area of ​​responsibility to the sphere of functioning of world financial markets and financial systems.

The emergence of the IMF's intention to regulate international financial relations caused changes in its organizational structure. First, in September 1999, the International Monetary and Financial Committee was formed, which became a permanent body for strategic planning of the IMF on issues related to the functioning of the world monetary and financial system.

In 1999, the IMF and the World Bank adopted a joint Financial Sector Assessment Program, the Financial Sector Assessment Program (FSAP), to provide member countries with a tool to assess the health of their financial systems.

In 2001, the Department for International Capital Markets was established. In June 2006, the United Department of Monetary Systems and Capital Markets Department (MSCMD) was established. Less than 10 years have passed since the inclusion of the global financial sector in the competence of the IMF and from the beginning of its "regulation", when the most massive global financial crisis in history erupted.

The IMF and the global financial and economic crisis of 2008

It is impossible not to note one fundamental point. In 2007, this world's largest financial institution was in a deep crisis. At that time, practically no one took or expressed a desire to take loans from the IMF. In addition, even those countries that received loans earlier tried to get rid of this financial burden as soon as possible. As a result, the size of ordinary outstanding loans fell to a record for the 21st century. marks - less than 10 billion SDRs (Fig. 6.9).

The world community, with the exception of the beneficiaries of the IMF activities represented by the United States and other economically developed countries, actually abandoned the IMF mechanism. And then something happened. Namely, the global financial and economic crisis broke out. The number of new loan arrangements, which had been approaching zero before the crisis, increased at a rate unprecedented in the fund's history (Figure 6.10).

The crisis that began in 2008 literally saved the IMF from collapse. Is this a coincidence? One way or another, the global financial and economic crisis of 2008 was extremely beneficial for the International Monetary Fund, and therefore, for those countries in whose interests it functions.

After the 2008 global crisis, it became clear that the IMF needed to be reformed. By the beginning of 2010, the total losses of the global financial system exceeded $4 trillion (about 12% of the world's gross product), two thirds of which are generated in bad assets of American banks.

In what direction did the reform go? First of all, the IMF tripled its resources. Since the London G20 summit in April 2009, the IMF has secured a whopping additional $500 billion in additional lending reserves, on top of the $250 billion it already has, although it is using less than $100 billion for aid programs. After the crisis it has become clear that the IMF wants to assume even more authority to manage the world economy and finances.

The trend is to gradually turn the IMF into a macroeconomic policy oversight body in almost every country in the world. It is obvious that in the conditions of such a "reform" new world crises are inevitable.

In this chapter of the monograph, the material of the dissertation of M.V. Deeva.

International Monetary Fund, IMF(International Monetary Fund, IMF) is a specialized agency of the United Nations, the decision to establish which was made on monetary and financial issues in 1944. The agreement on the establishment of the IMF was signed by 29 states on December 27, 1945, and the Fund began its work on 1 March 1947 As of March 1, 2016, 188 states are members of the IMF.

The main objectives of the IMF are:

1. promotion of international cooperation in the monetary and financial sphere;
2. promoting the expansion and balanced growth of international trade, the achievement of a high level of employment and real incomes of member states;
3. ensuring the stability of currencies, maintaining orderly monetary relations and preventing the depreciation of national currencies in order to obtain competitive advantages;
4. assistance in the creation of multilateral settlement systems between member states, as well as in the elimination of currency restrictions;
5. provision of funds in foreign currency to the member states of the Fund in order to eliminate imbalances in their balance of payments.

The main functions of the IMF are:

1. promotion of international cooperation in the field of monetary policy and ensuring stability;
2. lending to member countries of the Fund;
3. stabilization of exchange rates;
4. advising governments, monetary authorities and financial market regulators;
5. development of international financial statistics standards and the like.

The authorized capital of the IMF is formed by contributions from member countries, each of which pays 25% of its quota in or in the currency of other member countries, and the remaining 75% in national currency. Based on the size of quotas, votes are distributed among member countries in the governing bodies of the IMF. As of March 1, 2016, the authorized capital of the IMF was 467.2 billion SDRs. Ukraine's quota is 2011.8 billion SDRs, which is 0.43% of the total IMF quota.

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. As a rule, these are finance ministers or heads of central banks. The Council resolves key issues of the Fund's activities: amending the Articles of Agreement on the IMF, admitting and expelling member countries, determining and reviewing their quotas in the Fund's capital, and electing executive directors. The session of the Council takes place, as a rule, once a year. Decisions of the Board of Governors are taken by a simple majority (at least half) of the votes, and on important issues - by a "special majority" (70 or 85%).

The other governing body is the Executive Board, which determines IMF policy and consists of 24 executive directors. Directors are appointed by the eight countries with the largest quotas in the Fund - the United States, Japan, Germany, France, Great Britain, China, Russia and Saudi Arabia. The rest of the countries are organized into 16 groups, each of which elects one executive director. Together with the Netherlands, Romania and Israel, Ukraine is part of the Dutch group of countries.

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 100,000 SDRs of the amount of this contribution.

An essential role in the organizational structure of the IMF is played by the International Monetary and Financial Committee, which is an advisory body of the Council. Its functions are to develop strategic decisions related to the functioning of the world monetary system and the activities of the IMF, develop proposals for amending the Articles of Agreement on the IMF, and the like. A similar role is also played by the Development Committee, the Joint Ministerial Committee of the Boards of Governors of the World Bank and the Fund (Joint IMF - World Bank Development Committee).

Part of its powers are delegated by the Board of Governors to the Executive Board, which is responsible for the day-to-day work of the IMF and resolves a wide range of operational and administrative issues, including granting loans to member countries and overseeing their policies.

The IMF's Executive Board elects a Managing Director for a five-year term, who leads the Fund's staff. As a rule, he represents one of the European countries.

In the event of problems in the country's economy, the IMF can provide loans, which, as a rule, are accompanied by certain recommendations aimed at improving the situation. Such loans, for example, were provided to Mexico, Ukraine, Ireland, Greece and many other countries.

Loans can be provided in four main areas.

1. On the basis of the reserve share (Reserve Tranche) of the IMF member country within 25% of the quota, the country can receive a loan almost freely on the first request.
2. On a credit share basis, a country's access to IMF credit resources cannot exceed 200% of its quota.
3. Based on Stand-by Arrangements, which have been provided since 1952 and provide a guarantee that, within a certain amount and subject to certain conditions, a country can freely receive a loan from the IMF in exchange for the national currency. In practice, this is done by opening the country. granted for periods ranging from several months to several years.
4. Based on the Extended Fund Facility, since 1974, the IMF has been providing loans for long periods and in amounts exceeding countries' quotas. The basis for a country's application to the IMF for a loan under expanded lending is a serious imbalance caused by unfavorable structural changes. Such loans are usually provided in tranches for several years. Their main purpose is to assist countries in implementing stabilization programs or structural reforms. The Fund requires the country to meet certain conditions. The obligations of the borrowing country, which provide for the implementation of appropriate financial and economic measures, are recorded in the Memorandum of Economic and Financial Policies and sent to the IMF. The progress of fulfillment of obligations is periodically monitored by evaluating the provided target criteria for the implementation of the Memorandum (Performance Criteria).

Cooperation between Ukraine and the IMF is carried out on the basis of regular missions of the IMF, as well as cooperation with the representative office of the Fund in Ukraine. As of February 1, 2016, Ukraine's total debt on loans to the IMF amounted to 7.7 billion SDRs.

(See Special Drawing Rights; Official website of the IMF:

International Monetary Fund- IMF, a financial institution attached to the United Nations. One of the main functions of the IMF is the issuance of loans to states to compensate for the deficit in the balance of payments. The issuance of loans, as a rule, is linked to a set of measures recommended by the IMF to improve the economy.

The International Monetary Fund is a special institution of the United Nations. The head office is located in the capital of the USA - the city of Washington.

The International Monetary Fund was founded in July 1944 of the last century, but only in March 1947 did it begin its practice, issuing short-term and medium-term loans to needy countries in the face of a deficit in the country's balance of payments.

The IMF is an independent organization operating according to its own charter, the purpose is to establish cooperation between countries in the field of monetary finance, as well as to stimulate international trade.

Functions of the IMF come down to the following steps:

• facilitating cooperation between states on financial policy issues;
• growth in the level of trade in the global services market;
• providing loans;
• balancing;
• advising debtor states;
• development of the international bases of monetary reporting and statistics;
• publication of statistics in the region.

The powers of the IMF (International Monetary Fund) include actions to form and issue financial reserves to participants under a special form “Special Privileges for Borrowing”. The IMF's resources come from the signatures, or "quotas" of fund members.

At the top of the IMF pyramid is the general board of governors, which includes the head and his deputy of the fund's member country. Most often, the minister of finance of the state, or the governor of the Central Bank, acts as a manager. It is the meeting that decides all the main issues regarding the activities of the International Monetary Fund. The executive board, which consists of twenty-four directors, is responsible for formulating the fund's policy and carrying out its activities. The privilege of choosing the head is used by 8 countries that have the largest quota in the fund. They include almost all of the G8 countries.

The Executive Board of the IMF selects the manager for the next five years, who heads the overall staff. Since the second summer month of 2011, the head of the IMF is the Frenchman Christine Lagarde.

Impact of the International Monetary Fund on the global economy

The IMF gives credit to countries in a couple of cases: to pay off the payments deficit and maintain the macroeconomic stability of states. A country that needs additional foreign currency buys it or borrows it, providing the same amount in exchange, only in the currency that is official in this country and enters the current account of the IMF as a depository.

In order to strengthen international economic cooperation within the framework of international relations and create prosperous economies, organizations such as the International Monetary Fund and the World Bank were conceived in the 44th year. Despite similar ideas, the tasks and functions of the two organizations are somewhat different.

Thus, the IMF supports the development of international relations in the field of financial security, providing short-term and medium-term loans, as well as advice on economic policy and maintaining financial stability.

In turn, the World Bank is taking measures to allow countries to achieve economic potential, as well as to reduce the poverty threshold.

Working together in a variety of areas, the International Monetary Fund and the World Bank are helping countries reduce poverty by easing the debt burden. Twice a year, the organizations hold a joint meeting.

Cooperation between the IMF and Belarus began in July 1992. It was on this day that the Republic of Belarus became a member of the International Monetary Fund. Belarus' initial quota was just over SDR 280 million, which was later increased to SDR 386 million.

The IMF assists the Republic of Belarus in three ways:

• cooperation with and the Government of the Republic of Belarus on issues of programs in the field of the national economy, focusing on tax, monetary and trade policy;
• provision of resources in the form of loans and;
• expert and technical assistance.

The IMF provided financial assistance to Belarus twice. So in 1992, the Republic of Belarus was granted a loan in the amount of 217.2 million US dollars for systemic transformations in . And another 77.4 million under the stand-by loan agreement. By the beginning of 2005, the country paid off in full with the IMF.

The second time, the country's leadership turned to the IMF in 2008 with a request to lend again through the stand-by system. The financing program was agreed in January 2009 and the Republic of Belarus was allocated US$2.46 billion for a period of fifteen months. The amount was later increased to US$3.46 billion.

The implemented programs allowed the Republic of Belarus to maintain stability in the market of foreign exchange transactions, the stability of the financial system, to avoid a deficit in the balance of payments and to do the impossible - to reduce it, minimizing it.

The Belarusian authorities are negotiating a new IMF loan in the amount of $3 billion at 2.3% for a period of 10 years. To provide a loan, the IMF calls on Belarus to implement a comprehensive economic reform strategy.

At the beginning of 2017, the main issues of negotiations were the change in housing and communal services tariffs and the improvement of the work of the public sector of the economy. The IMF is calling for a series of reforms for SOEs to improve their productivity and efficiency, and recommends sequencing efforts to achieve full cost recovery in the housing sector.

Increases in tariffs for housing and communal services and the privatization of state-owned enterprises are the key topics in negotiations with the IMF. For its part, the country's Foreign Ministry believes that in matters of raising tariffs in housing and communal services, as well as the privatization of the public sector, one should move in stages.

As the IMF notes, it is of great importance to improve the country's business climate, including through accession to the WTO and the development of competition in commodity markets. The country also needs to pursue a prudent monetary policy to maintain macroeconomic and financial stability.

The International Monetary Fund (IMF) was created to maintain stability in international monetary relations. Its official tasks, set out in the IMF Charter, are cooperation in international monetary matters, assistance in stabilizing currencies, eliminating currency restrictions and creating a multilateral settlement system between countries, providing member countries with foreign exchange resources to eliminate temporary violations of their balance of payments. From the beginning of the 80s. The IMF began to provide medium- and long-term loans (for 7-10 years) for "structural restructuring of the economy" to member countries implementing radical economic and political reforms.

The IMF began operations in March 1947 as a specialized body of the United Nations. The location of the central office, Washington, has its branches and representative offices in a number of countries. The founders of the IMF were 44 countries, in 1999 its members were 182 states.

In the governing bodies, votes are determined in accordance with the size of quotas. Each country has 250 votes plus 1 vote for every 100,000 SDRs of its quota. Decisions are made by a simple majority (at least half) of the votes, and on the most important issues - by a special majority (85% of the votes are of a strategic nature, and 70% are of an operational nature). Since the leading countries of the West have the largest number of quotas in the IMF (the United States - 17.5%, Japan - 6.3, Germany - 6.1, Great Britain and France - 5.1 each, Italy - 3.3%), and in general 25 economically developed states - 62.8%, then these countries control and direct its activities in their own interests. It should be noted that the United States, as well as EU countries (30.3%), can veto key decisions of the Fund, since their adoption requires a qualified majority of votes (85%). The role of other countries in decision-making is small, given their insignificant quotas (Russia - 3.0%, China - 3.0%, Ukraine - 0.69%).

Authorized capital The IMF is formed from the contributions of member states in accordance with the quota established for each country, which is determined based on the economic potential of the country and its place in the world economy and foreign trade.

In addition to equity, the IMF raises borrowed funds to expand its lending activities. To replenish credit resources, the IMF uses the following "mechanisms":

Master Loan Agreement;

new loan agreements;

borrowing funds from member countries of the IMF.

In 1962, the Fund signed with 10 economically developed countries (USA, Germany, Great Britain, Japan, France, etc.) Master Loan Agreement, which provided for the provision of revolving loans to the Fund. This agreement was originally concluded for 4 years, and then began to be renewed every 5 years. The credit limit was initially set at 6.5 billion CIIIA dollars, and in 1983 increased to 17 billion SDRs (23.3 billion US dollars). To deal with financial emergencies, the IMF's Executive Board (Directorate) expanded the Fund's borrowing capacity by approving in 1997 New Loan Agreements under which the IMF could raise up to SDR 34 billion (about $45 billion). The IMF also resorts to obtaining loans from central banks (in particular, it received a number of loans from the national banks of Belgium, Saudi Arabia, Japan and other countries).

The Fund, in turn, provides the funds received on the terms of a loan for a certain period with the payment of a certain percentage.

The most important direction of the Fund's activity is its lending operations. According to the statute. The IMF provides loans to member countries to rebalance their balance of payments and stabilize exchange rates. The IMF carries out lending operations only with the official bodies of member countries: treasuries, central banks, stabilization funds.

A country in need of foreign currency or SDRs purchases them from the Fund in exchange for an equivalent amount in local currency, which is credited to the IMF's account at the country's central bank. After the expiration of the established term of the loan, the country is obliged to perform the reverse operation, i.e., to redeem from the Fund the national currency held in a special account and return the received foreign currency or SDR. Such loans are given for up to 3 years and less often -5 years. For the use of loans, the IMF charges a fee of 0.5% of the loan amount and an interest rate for using the loan, the amount of which is set on the basis of market rates in force at the relevant time (most often it is 6-8% per annum). If the national currency of the debtor country held by the IMF is bought by any member country, then this is considered as repayment of the debt to the Fund.

The amount of loans provided by the Fund and the possibility of obtaining them are related to the fulfillment by the borrowing country of a number of conditions that are not always acceptable for these countries.

IMF since the early 1950s. began to conclude with member countries standby loan agreements or Stand-by Arrangements. Under such an agreement, a member country has the right to receive foreign currency from the IMF in exchange for national currency at any time, but on terms agreed with the Fund.

In order to assist IMF member countries experiencing difficulties in economic development for reasons beyond their control, as well as to assist in solving extensive problems of an economic and social nature. The Fund has created a number of special mechanisms that provide funds on foreign exchange terms. These include:

A mechanism for compensatory and emergency financing, the funds of which are allocated in connection with natural disasters that have befallen the country, unforeseen changes in world prices and other reasons;

Financing mechanism for buffer (reserve) stocks of raw materials created in accordance with international agreements;

The Financial Support Facility for External Debt Reduction and Servicing, which allocates funds to developing countries in external debt crises;

Structural Transformation Support Facility, which funds are channeled to countries in transition to a market economy through radical economic and political reforms.

In addition to the mechanisms that are currently functioning, the IMF created temporary special funds that were designed to help overcome currency crises that arose for various reasons (for example, an oil fund - to cover additional costs due to a significant increase in prices for oil and oil products; a trust fund - to provide assistance to the poorest countries at the expense of proceeds from the sale of gold from the IMF reserves, etc.).

Russia became a member of the IMF in 1992. In terms of the size of the allocated quota (4.3 billion SDRs, or 3%) and the number of votes (43.4 thousand, or 2.9%), it ranked 9th. Over the past years, Russia has received various types of loans from the Fund (reserve loans - stand-by, to support structural adjustment, etc.). In March 1996, the Board of Governors of the IMF approved the provision of an extended loan to Russia in the amount of $10.2 billion, which has already been used for the most part, including to repay the Fund's debt on previously granted loans. As of January 1, 1999, Russia's total debt to the Fund was $19.7 billion.

The World Bank Group includes the International Bank for Reconstruction and Development (IBRD) and its three affiliates - the International Development Association (MAP), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

Headed by a single leadership, each of these institutions independently, at the expense of its available funds and on various conditions, finances investment projects and promotes the implementation of economic development programs in a number of countries.