The goals of the IMF are. International Monetary Fund (IMF). How the authorized capital of the IMF is formed

In this article, we will talk about the functions of the International Monetary Fund (IMF), the principles of work, financing and its interaction with Russia.

What are international funds for?

Their main role is financial and advisory assistance to the participating countries in economic development.

The International Bank for Reconstruction and Development has a leading role in the stabilization function. The IBRD or the World Bank includes the Development Association and the Financial Corporation. There are also various international banks serving their regions - Asian, African and European states.

IMF - history of creation

The IMF is a monetary and credit organization that operates as a specialized structure of the UN.

The IMF was created in 1944 at the Bretton Woods conference. In December 1945, 29 states signed the Fund's Charter.

The main tasks of the Foundation are:

• promotion of world trade;
• stabilization of exchange rate fluctuations;
• assistance to IMF member countries in correcting the deficit of their balance of payments and others.

To date, the IMF includes 188 countries.

How the authorized capital of the IMF is formed

The initial authorized capital amounted to 7.6 billion dollars. USA. Now the IMF uses its own reserve and payment means, the so-called SDRs - special drawing rights. They are not printed, but presented as entries on balance sheets.

With the help of SDRs, the balance of payments is regulated, reserves are replenished, and payments are made for the Fund. Today, the cost of 1 SDR is 1.4 US dollars, and the approximate value of the authorized capital of the IMF is estimated at 238 billion SDRs or 327 billion US dollars.

The fund is replenished by contributions from states according to established quotas. They determine the amount of borrowing, as well as the voting power of the participating country.

The payment structure is something like this:

1. 25% of the amount goes to the IMF accounts - in the form of SDRs or other foreign currency;
2. 75% of liabilities are repaid in national currency.

The Russian share of quotas is approximately 2.5%. The percentage of votes of our state, in the total number of voters in the IMF, is 2.4%.

IMF tranche

Short-term or long-term lending to IMF member countries is carried out in portions - in tranches.

The amount of financing may correspond to the usual credit shares (maximum 125% of the quota) or be significantly increased. The state can receive an increased amount of funds in case of serious difficulties with the balance of payments.

Tranches are paid every six months, three months, a month or more often. IMF resources should be directed towards reforms and stabilization of macroeconomic or structural indicators.

IMF loan conditions

Lending is carried out in conjunction with the nomination of a number of requirements. Failure to comply with the terms of the Fund may result in a refusal to provide further tranches or to limit lending.

With each new tranche, the requirements of the IMF are becoming tougher. These conditions may be:

• privatization of state property;
• ensuring the free movement of capital;
• optimization or elimination of budget expenditures for the social sphere (health, education, housing, public transport);
• wage cuts;
• tax increase and more.

Through the tranche system, the IMF can exert economic influence on the borrowing country.

How are IMF debts paid off?

Debtor countries repay each credit tranche within 4-10 years. Thanks to the IMF reforms of 2010-2011. access limits have been doubled. The amount of lending to the world's poorest countries was also increased without the need to pay %% until 2016 inclusive.

The Russian Federation became a member of the IMF in May 1992. According to the Ministry of Foreign Affairs, at the beginning of 2005 Russia repaid ahead of schedule all credit obligations to the Fund in the amount of approximately $3.3 billion. USA.

Today, the Russian Federation seeks to independently develop and implement economic programs, without attracting IMF resources.

Advice from Sravni.ru: you can follow the official news of the organization on the official website.

The Russian Federation has been a member of the International Monetary Fund (IMF) for 25 years. On June 1, 1992, Russia joined one of the largest financial organizations in the world.
During this time, Russia has gone from a borrower, which received about $22 billion from the IMF, to a creditor.

The history of relations between Russia and the IMF - in the material TASS.
What is the International Monetary Fund? When did it appear and who is included in it?
The official creation date of the IMF is December 27, 1945. On this day, the first 29 states signed the IMF Charter, the Fund's main document. The organization's website indicates the main goal of its existence: ensuring the stability of the international monetary system, that is, the system of exchange rates and international payments, which allows countries and their citizens to conduct transactions with each other.
Today, the IMF includes 189 states.How does the IMF work?
The Foundation performs many functions. For example, he is following over the state of the international monetary and financial system both globally and in each specific country. In addition, employees IMF advises countries that are part of the organization. Another function of the fund is lending to countries with significant problems in the economy.
Each member country of the IMF has its own quota, which affects the size of contributions, the number of "votes" in decision-making and access to financing. The current IMF quota formula consists of four components: gross domestic product, economic openness and volatility, and a country's international reserves.
Each member state transfers contributions to the fund in certain currency proportions - a quarter to choose from in one of the following currencies: US dollar, euro (until 2003 - mark and French franc), Japanese yen, Chinese yuan and pound sterling. The remaining three quarters are in national currency.
Since the IMF member countries have different currencies, since 1972, for general convenience, the fund's finances have been converted into an internal means of payment, it's called SDR("special drawing rights"). It is in the SDR that the IMF conducts all calculations and issues loans, and only by "clearing" - there are no coins, no SDR banknotes and never have been. The exchange rate is floating: as of June 1, 1 SDR was equal to $1.38, or 78.4 rubles.
However, at the time of Russia's accession to the IMF, a curious situation developed. In 1992, our country did not have the opportunity to contribute its share in foreign currency. The problem was solved in an original way - the country took an interest-free loan for one day from the United States, Germany, France and Japan in the currencies of these countries, made its contribution to the IMF and immediately asked for its "reserve share" (a loan in the amount of a quarter of the quota that the member country has the right to ask the fund at any time in foreign currency). Then she returned the funds.How big is the Russian quota in the modern IMF?
Russia's quota is 2.7% - 12,903 million SDRs ($17,677 million, or almost a trillion rubles).
Why was the Soviet Union not a member of the IMF?
Some experts believe that this is a miscalculation of the USSR leadership. For example, the current doyen of the Board of Directors of the fund (the IMF term, literally translated as "elder") Alexei Mozhin told TASS that the Soviet delegation participated in the Bretton Woods conference, which developed the IMF Charter. Its participants turned to the leadership of the Soviet Union with a recommendation to join the IMF, but the then People's Commissar for Foreign Affairs Vyacheslav Molotov wrote a refusal resolution. According to Mozhin, the reason was the peculiarities of the Soviet economy, other statistics and the reluctance of the authorities to give out certain economic data to foreign states, for example, the size of gold and foreign exchange reserves.
Dmitry Smyslov, chief researcher at the Institute of World Economy and International Relations, author of the book "The History of Russia's Relations with International Financial Institutions", gives another explanation: "The dogmatic ideological stereotypes that were inherent in the former political leadership of the USSR."Why did Russia start borrowing money from the fund?
After the collapse of the Soviet Union, multibillion-dollar debts remained, which were liquidated only this year. According to various sources, they ranged from 65 to 140 billion dollars. Initially, it was planned that 12 republics of the former Soviet Union (except for the Baltic countries) would give loans. However, at the end of 1992, Russian President (1991-1999) Boris Yeltsin signed an agreement on the "zero option", in which the Russian Federation agreed to pay the debts of all the republics of the USSR, and in return received the right to all the assets of the former Union.
The IMF and the United States (as the owner of the largest quota in the fund) welcomed this decision (according to one of the versions - because other republics simply refused to return loans and in 1992 only Russia gave the money). Moreover, according to Smyslov, the IMF almost set the signing of the "zero option" as a condition for joining the fund.
The fund made it possible to receive funds for long periods and at very low interest rates (in 1992 the rate was 6.6% per annum and since then it has been steadily decreasing). Thus, Russia "refinanced" its debts to the creditors of the USSR: their "interest rate" was significantly higher. The reverse side of the medal was the requirements that the IMF put forward to Russia. And how much did we get from the fund?
There are two numbers. The first of these is the size of approved loans, which is 25.8 billion SDR. However, in fact, Russia received only 15.6 billion SDRs. This significant difference is explained by the fact that loans are issued in installments and with certain conditions. If, according to the IMF, Russia did not fulfill them, further tranches simply did not come.
For example, according to the results of 1992, Russia had to reduce the budget deficit to 5% of GDP. But it turned out to be twice as high, and therefore the tranche was not sent. In 1993, the IMF was supposed to lend more than 1 billion SDRs, but its management was not satisfied with the results of the financial and macroeconomic stabilization being carried out in Russia. For this reason, and also because of changes in the composition of the government of the Russian Federation, the second half of the loan in 1993 was never granted. Finally, in 1998, Russia defaulted, and therefore more than $10 billion in financial assistance was not provided. In 1999-2000, the IMF was supposed to lend about $4.5 billion, but only transferred the first tranche. Lending stopped at the initiative of Russia- the price of oil rose, in 2000 the political situation in the country changed significantly and the need to get into debt disappeared. After that, Russia until 2005 repaid loans. Since that moment, our country has not borrowed funds from the IMF.
In any case, Russia was the IMF's largest borrower, and, for example, in 1998, the number of loans issued exceeded the quota by more than three times.

What was this money spent on?
There is no single answer. Some of them went to strengthen the ruble, some - to the Russian budget. A lot of money from IMF loans went to pay off the external debt of the USSR to other creditors, including the London and Paris Clubs.The IMF helped only with money?
No. The Fund provided Russia and other post-Soviet countries complex of expert and consulting services. This was especially relevant immediately after the collapse of the USSR, since at that time Russia and other republics were not yet able to effectively manage a market economy. According to Alexei Mozhin, the fund played a decisive, key role in the creation of the treasury system in Russia. In addition, relations with the IMF helped Russia to receive other loans, including from commercial banks and organizations.What is Russia's relationship with the IMF now?
“Russia is participating in the financing of our efforts, whether in African countries, where we now have many programs, or in some European countries where we work. And the money will return to it, with interest,” the IMF Managing Director described the role of our country Christine Lagarde in an interview with TASS.
In turn, Russia periodically holds consultations with the IMF on all aspects of the economic situation in our country and economic development.
Sergey Kruglov

P.S. Bretton Woods. July 1944. It was here that the bankers of the Anglo-Saxon world finally rebuilt a very strange and counterintuitive financial system, the inevitable decline of which we are witnessing today. Why inevitable? Because the system invented by the bankers contrary to the laws of nature. In the world, nothing disappears into nowhere and nothing appears from nothing. The law of conservation of energy operates in nature. And the bankers decided to violate the fundamental foundations of being. Money out of thin air, wealth out of nothing, without labor is the fastest way to degradation and degeneration. This is exactly what we are seeing today.

Great Britain and the United States actively directed events in the direction they needed. After all, a new world could only be built ... on the bones of the old one. And for this, a world war was needed. As a result, the dollar was supposed to become the world's reserve currency. This task was solved by the Second World War and tens of millions of deaths. Only in this way did the Europeans agree to part with their sovereignty, an integral feature of which is the issuance of its own currency.

But the Anglo-Saxons were seriously going to launch a nuclear strike on Russia-USSR in the event of Stalin's disagreement to "surrender" their financial independence. In December 1945, Stalin had the courage not to ratify the Bretton Woods agreements. Since 1949, the arms race will begin.

The struggle is tied up because Stalin refused to surrender the state sovereignty of Russia. Yeltsin and Gorbachev will hand him over for a couple.

The main outcome of Bretton Woods was cloning the American financial system to the whole world, with the creation in each country of a branch of the Fed, subordinate to the world behind the scenes, and not to the government of this country.

This structure is pocketable and manageable for the Anglo-Saxons.
Not the IMF itself, but the US government decides what and how the International Monetary Fund should decide. Why? Because the United States has a "controlling stake" of the IMF's votes, which was determined at the time of its creation. And the "independent" central banks are just part of the International Monetary Fund, they comply with the norms of this organization. Under the film of beautiful words about the stability of the world economy, about the desire to avoid crises and cataclysms, there was a structure designed to tie the whole world to the dollar and the pound once and for all.

IMF employees are not subject to anyone in the world, while they themselves have the right to demand any information. They cannot be denied.
Right in prea The emblem of the IMF's statute bears the inscription: “International Monetary Fund. Washington DC, USA"

Author: N.V. Starikov

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 the 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 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 relevant 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:

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 countries. 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 incomes 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) program and, for temporary needs arising from external shocks, through the Exogenous Shocks Facility (ESF) program. 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 loans 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 purchased 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, up to a certain amount and for the duration of the arrangement, subject to specified 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 the implementation of 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 appropriate 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 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 can 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 lends only to poor countries, the IMF can lend to any of its member countries that lack foreign exchange to cover short-term financial obligations.

Structure of governing bodies

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 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%.

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) SDRs received by it 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, 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, which is the directorate 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 overseeing their exchange rate policies.

The IMF 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

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

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 purchased 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 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.

4. 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 appropriate 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.

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 had sunk to a 10 percent drop by 1990, with all the predictable social consequences.

Most of the loans issued by the IMF to Yugoslavia in the 80s went to service this debt and solve problems caused by the implementation of IMF prescriptions. The Foundation forced Yugoslavia to stop the economic alignment of the regions, which led to the growth of separatism and further civil war, which claimed the lives of 600 thousand people.

In the 1980s, the Mexican economy collapsed due to a sharp drop in oil prices. The IMF began to act: loans were issued in exchange for large-scale privatization, cuts in government spending, etc. Up to 57% of government spending was spent on paying off external debt. As a result, about $45 billion left the country. Unemployment reached 40% of the economically active population. The country was forced to join NAFTA and provide huge benefits to American corporations. The incomes of Mexican workers instantly fell.

As a result of the reforms, Mexico - the country where corn was first domesticated - began to import it. The support system for Mexican farms was completely destroyed. After the country joined NAFTA in 1994, liberalization went even faster, protectionist tariffs began to be eliminated. The United States, however, did not deprive its farmers of support and actively supplied corn to Mexico.

The proposal to take and then pay off external debt in foreign currency leads to an orientation of the economy exclusively to export, regardless of any food security measures (as was the case in many African countries, the Philippines, etc.).

see also

• Member States of the IMF

Notes

Literature

• Cornelius Luca Trading in the global currency markets = Trading in the Global Currency Markets. - M .: Alpina Publisher, 2005. - 716 p. - ISBN 5-9614-0206-1

Links

• IMF Governance Structure and Member Voices (see table on page 15)
• The Chinese Renmin Ribao should become the President of the IMF 19.05.2011
• Egorov A. V. "International financial infrastructure", Moscow: Linor, 2009. ISBN 978-5-900889-28-3
• Alexander Tarasov "Argentina is another victim of the IMF"
• The IMF can be dissolved? Yuri Sigov. "Business Week", 2007
• IMF loan: pleasure for the rich and violence for the poor. Andrew Ganzha. "Telegraph", 2008 - link copy of the article does not work
• International Monetary Fund (IMF) "First Moscow Currency Advisors", 2009