IMF (International Monetary Fund), means the functioning of the International Monetary Fund and the international financial system to regulate. The town was founded in Bretton Woods in 1944 and in 1947 the U.S. is an international organization that begins to work effectively.
The IMF’s loans, contrary to the The amount is small. However, despite this, they want to take a loan from the IMF countries. Because it gives credit to the IMF for a country means that other countries, means that they would easily lend to that country. At this stage, the IMF has for the country the meaning of a light Yesil. From the IMF alone every time we want to, we can’t ask for every need in a time of debt. You must have the unstoppable borrowing from the IMF for balance of payments deficit.
The Duties Of The IMF Are As Follows;
*International financial order, in order to restore balance of payments deficit countries in the short-term and sometimes long-term credit facilities provide.
*Spying on exchange rate policies of countries.
*Wants to pay its debts to the commercial banks or official institutions of the country in the event of discovering A dec between the parties.
*To encourage countries to implement a more liberal foreign exchange regime and foreign trade.
*Provide technical assistance to countries.
If we look at the functioning of the IMF, the first IMF member country quota is determined. When determining the quota, the country’s domestic product and foreign trade volume is based on.
This quota of that country;
-The amount to be paid to the Fund,
-The amount of credit that will draw from the Fund,
The Fund determines the right to vote.
The country is a member of the Fund, the Fund 75% of own national currency in the remaining 25% invests in USD denominated. Thus, at the disposal of the Fund at any moment is found ready for use in every country.
IMF loans usually the repayment period is 3-5 years. But this makes the interest payments a country that uses a low interest credit. Bought the country’s debt with money you can afford to pay in the currency that shall be denominated in SDRs, as the IMF’s.
On the basis of IMF loan conditionality, performance criteria is based on. It prompts you to perform certain conditions of the IMF for lending to the country.
-Country public expenditure-restrictive measures.
-Take measures to increase taxes.
-You were stuck in the money supply.
-Free price policies are tracked.
-Foreign trade liberallessin.
-Equal to the value of the national currency by shifts.