The International Monetary Fund (IMF) was created to maintain stability in international monetary relations. Its official objectives, as set out in the IMF Charter, are cooperation in international monetary matters, assistance in stabilizing currencies, eliminating foreign exchange restrictions and creating a multilateral settlement system between countries, providing member countries with foreign exchange resources to eliminate temporary disturbances in their balance of payments. Since 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 carrying out radical economic and political reforms.
The IMF began its operations in March 1947 as a specialized agency of the UN. 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 governing bodies votes are determined according to the size of quotas. Each country has 250 votes plus 1 vote for every 100 thousand SDR units of its quota. Decisions are made by a simple majority (at least half) of votes, and by the most important issues- special majority (85% of votes are of a strategic nature, and 70% of an operational nature). Since the leading Western countries have the largest number of quotas in the IMF (USA - 17.5%, Japan - 6.3, Germany - 6.1, Great Britain and France - 5.1 each, Italy - 3.3%), and in general 25 economically developed countries - 62.8%, then these countries control and direct its activities in their interests. It should be noted that the US, as well as EU countries (30.3%) can veto key decisions Fund, since their adoption requires a qualified majority of votes (85%). The role of other countries in decision-making is small, given their small quotas (Russia - 3.0%, China - 3.0%, Ukraine - 0.69%).
Authorized capital The IMF is formed from contributions from member states in accordance with a 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 its own capital, the IMF raises borrowed funds to expand its lending activities. To replenish credit resources, the IMF uses the following “mechanisms”:
General agreement on loans;
new loan agreements;
borrowing funds from IMF member states.
In 1962, the Fund signed with 10 economically developed countries (USA, Germany, UK, Japan, France, etc.) General agreement on loans, which provided for the provision of revolving loans to the Fund. This agreement was initially concluded for 4 years, and then began to be renewed every 5 years. The credit limit was initially set at $6.5 billion CIIIA, and in 1983 increased to SDR 17 billion ($23.3 billion). In order to overcome emergency situations in the financial sector, the IMF Executive Board (Directorate) expanded the Fund's borrowing capabilities by approving in 1997 New Borrowing Agreements, under which the IMF can attract up to SDR 34 billion in funds from 25 prospective countries participating in these agreements ( about 45 billion US dollars). The IMF also resorts to obtaining loans from central banks (in particular, it has 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 loan terms for a certain period with payment of a certain percentage.
The most important activity of the Fund is its credit operations. According to the Charter. The IMF provides loans to member countries to restore equilibrium in their balance of payments and stabilize exchange rates. The IMF carries out lending operations only with official bodies of member countries: treasuries, central banks, stabilization funds.
A country in need of foreign currency or in SDRs, purchases them from the Fund in exchange for an equivalent amount in national currency, which is credited to the IMF account at the central bank of the country. Upon expiration of the established loan period, the country is obliged to perform the reverse operation, i.e., buy back the national currency in the special account from the Fund and return the received foreign currency or SDR. These types of loans are given for a period of up to 3 years and less often - 5 years. For the use of loans, the IMF charges a commission fee of 0.5% of the loan amount and an interest rate for the use of the loan, the amount of which is set on the basis of market rates in effect at the relevant time (most often it is 6-8% per annum). If the national currency of a debtor country held by the IMF is purchased by any member state, this is considered as repayment of debt to the Fund.
The size 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 to these countries.
IMF since the early 50s. began to enter into agreements with member countries standby loan agreements, or stand-by agreements. 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 provide assistance to 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:
Compensatory and emergency financing mechanism, funds of which are allocated in connection with natural disasters that have befallen the country, unforeseen changes in world prices and other reasons;
Mechanism for financing buffer (reserve) stocks of raw materials created in accordance with international agreements;
External Debt Reduction and Service Facility, which provides funds to developing countries facing external debt crises;
A structural change support mechanism that focuses on countries transitioning to a market economy through radical economic and political reforms.
In addition to these currently functioning mechanisms, the IMF created temporary special funds that were designed to help overcome crisis currency situations that arose for various reasons (for example, an oil fund - to cover additional expenses due to a significant increase in prices for oil and petroleum products; a trust fund - to provide assistance to the poorest countries using 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 (SDR 4.3 billion, or 3%) and the number of votes (43.4 thousand, or 2.9%), it took 9th place. 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 IMF Board of Governors 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 outstanding debt on previously provided loans. The total amount of Russia's debt to the Fund as of January 1, 1999 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 funds and on various conditions, finances investment projects and promotes the implementation of programs in a number of countries economic development.
International Monetary Fund, IMF International Monetary Fund, IMF) - specialized institution UN, headquartered in Washington, USA.
At the United Nations Bretton Woods Conference on Monetary and Financial Affairs on July 22, 1944, the framework for the agreement was developed ( IMF Charter). The most significant contributions to the development of the IMF concept were made by John Maynard Keynes, who headed the British delegation, and Harry Dexter White, a senior official at the US Treasury Department. The final version of the agreement was signed by the first 29 states on December 27, 1945 - the official date of the creation of the IMF. The IMF began operations on March 1, 1947, as part of the Bretton Woods system. In the same year, France took out its first loan. Currently, the IMF unites 188 countries, and its structures employ 2,500 people from 133 countries.
The IMF provides short- and medium-term loans when there is a government balance of payments deficit. The provision of loans is usually accompanied by a set of conditions and recommendations.
IMF policies and recommendations regarding developing countries have been repeatedly criticized, the essence of which is that the implementation of recommendations and conditions are ultimately not aimed at increasing independence, stability and development of the national economy of the state, but only at tying it to international financial flows. Among the managing directors of the IMF were: a Spaniard, a Dutchman, a German, 2 Swedes, 6 French.
In accordance with Article 1 of the agreement, the IMF sets itself the following goals:
- Promote the development of international cooperation in the monetary and financial field within the framework of a permanent institution providing a mechanism for consultation and collaboration over international monetary and financial problems.
- To promote the expansion and balanced growth of international trade and thereby contribute to the achievement and maintenance high level and employment real income, as well as the development of the productive resources of all member states, considering these actions as the primary objectives of economic policy.
- Maintain currency stability and an orderly exchange rate regime among member states, and avoid devaluation of currencies in order to gain competitive advantage.
- Assist in the establishment of a multilateral current account settlement system among member countries, as well as in the removal of foreign exchange restrictions that impede the growth of world trade.
- Due to temporary provision shared resources funds to member countries, with adequate safeguards, to provide them with confidence, thereby ensuring that imbalances in their balance of payments can be corrected without resorting to measures that could be detrimental to welfare at the national or international level.
- In accordance with the above, reduce the duration of imbalances in the external balances of payments of member states, as well as reduce the scale of these imbalances.
Structure of governing bodies
The highest governing body of the IMF is Board of Governors(English) Board of Governors), in which each member country is represented by a governor and his deputy. These are usually finance ministers or central bankers. The Council is responsible for resolving key issues of the Fund’s activities: amending the Articles of Agreement, admitting and expelling member countries, determining and revising their shares in the capital, and electing executive directors. Governors usually meet in session once a year, but may hold meetings and vote by mail at any time. Authorized capital is about SDR 217 billion. SDR (Special Drawing Rights, SDR, SDRs) or Special Drawing Rights (SDR), is an artificial reserve and means of payment issued by the IMF. As of January 2008, 1 SDR was equal to approximately 1.5 US dollars. It is formed by contributions from member states, each of which usually pays approximately 25% of its quota in SDRs or in the currencies of other members, and the remaining 75% in its own 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 appointed 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 selects 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 groups are formed by countries with similar interests and usually from the same region, such as French-speaking countries in Africa.
The most big amount votes in the IMF (as of June 16, 2006]) are held by: USA - 17.08% (16.407% - 2011); Germany - 5.99%; Japan - 6.13% (6.46% - 2011); Great Britain - 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 economic cooperation and Development have a combined 60.35% of votes in the IMF. The share of other countries, making up over 84% of the number of members of the Fund, accounts for only 39.65
The IMF operates on the principle of a “weighted” number of votes: the ability of member countries to influence the Fund’s activities through 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 SDR of the amount of this contribution. If a country bought (sold) SDRs received during the initial issue of SDRs, the number of its votes increases (decreases) by 1 for every 400 thousand purchased (sold) SDRs. This correction is carried out by no more than? from the number of votes received for the country's contribution to the capital of the Fund. This arrangement ensures a decisive majority of votes for the leading states.
Decisions in the Board of Governors are usually made by a simple majority (at least half) of votes, and on important issues of an operational or strategic nature - by a “special majority” (70 or 85% of the votes of member countries, respectively). Despite some reduction specific gravity 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 leading Western countries, has the opportunity to exercise control over the decision-making process in the IMF and direct its activities based on their interests. With coordinated action, developing countries are also able to prevent decisions that do not suit them. However, achieving consistency a large number heterogeneous countries is difficult. At the Fund's April 2004 meeting, the intention was expressed to "enhance the ability of developing countries and countries with economies in transition to participate more effectively in the decision-making machinery of the IMF."
Significant role in organizational structure The IMF plays the International Monetary and Financial Committee (IMFC). 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 twice a year. This committee is an advisory body of the Board of Governors and has no 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 global monetary system and the activities of the IMF; submits to the Board of Governors proposals for amendments to the IMF's Articles of Agreement. 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).
The Board of Governors delegates many of its powers to the Executive Board, a directorate that is responsible for conducting the affairs of the IMF, which includes a wide range of political, operational and administrative issues, such as providing loans to member countries and overseeing their policies. exchange rate.
The IMF Executive Board elects a Managing Director for a five-year term, who heads the Fund's staff (as of March 2009 - about 2,478 people from 143 countries). Typically it represents one of European countries. Managing Director (since July 5, 2011) is Christine Lagarde (France), her first deputy is John Lipsky (USA).
Basic lending mechanisms
- Reserve share. The first portion of foreign currency that a member country can purchase from the IMF within 25% of the quota was called “golden” 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 a member country's national currency to provide credit to other countries, that country's reserve share increases accordingly. The outstanding amount of loans provided by a member country to the Fund under the loan agreements of the NHS and NHS constitutes its credit position. The reserve share and the lending position together constitute the “reserve position” of an IMF member country.
- Credit shares. Funds in foreign currency that can be acquired by a member country in excess of the reserve share (if fully used, the IMF's holdings in the country's currency reach 100% of the quota) are divided into four credit shares, or tranches (Credit Tranches), each constituting 25% of the quota . Member countries' access to IMF credit resources within the framework of credit shares is limited: the amount of a country's currency in the IMF's assets cannot exceed 200% of its quota (including 75% of the quota contributed by subscription). Thus, the maximum amount of credit that a country can receive from the Fund as a result of using reserve and credit 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 are in many cases used in amounts exceeding the limit fixed in the charter. Therefore, the concept of “Upper Credit Tranches” began to mean not only 75% of the quota, as in early period activities of the IMF, and amounts exceeding the first credit share.
- Stand-by loan arrangements Stand-by Arrangements) (since 1952) provide the member country with a guarantee that, up to a certain amount and for the duration of the agreement, subject to compliance with specified conditions, the country can freely receive foreign currency from the IMF in exchange for national currency. This practice of providing loans is the opening of a line of credit. While the use of the first credit share can be carried out in the form of an outright purchase of foreign currency after the Fund approves its request, the allocation of funds for the account of the upper credit shares is usually carried out through arrangements with member countries for reserve credits. From the 50s to the mid-70s, agreements on stand-by loans had a term of up to a year, since 1977 - up to 18 months and even up to 3 years due to the increase in balance of payments deficits.
- Extended lending mechanism(English) Extended Fund Facility) (since 1974) supplemented the reserve and credit shares. It is designed to provide loans for longer periods and in large sizes in relation to quotas than within the framework of regular credit 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 specified intervals - once every six months, quarterly or (in some cases) monthly. The main purpose of stand-by loans 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 severity increases as they move from one loan share to another. Certain conditions must be met before receiving a loan. The obligations of the borrowing country, providing for its implementation of relevant financial and economic activities, are recorded in the “Letter of Intent” or Memorandum of Economic and Financial Policies sent to the IMF. The progress in fulfilling obligations by the country receiving the loan is monitored by periodically assessing the special performance criteria provided for in the agreement. These criteria can be either quantitative, related to certain macroeconomic indicators, or structural, reflecting institutional changes. If the IMF considers that a country is using a loan in conflict with the goals of the Fund and is not fulfilling its obligations, it may limit its lending and 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's activities focus on relatively short-term macroeconomic crises. The World Bank provides loans only to poor countries, the IMF can provide loans to any of its member countries that lack foreign exchange to cover short-term financial obligations.
The IMF provides loans with a number of requirements - freedom of movement of capital, privatization (including natural monopolies - railway transport and utilities), minimizing or even eliminating government spending on social programs - education, healthcare, cheaper housing, public transport and so on.; refusal of protection environment; wage cuts, restrictions on workers' rights; increasing tax pressure on the poor, etc.
The International Monetary Fund (IMF) is a special agency of the United Nations established by 184 countries. The IMF was created on December 27, 1945 after the signing of an agreement by 28 countries 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 international organization, which unites 184 states. The Fund was created to ensure international cooperation in the monetary field and maintain the stability of exchange rates; supporting economic development and employment levels in countries around the world; and providing additional in cash economy of a particular state in the short term. Since the IMF was created, its objectives 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 its member countries as actors in the global economy.
Growth of IMF membership, 1945 - 2003
(number of countries)
Objectives of the International currency board the following:
- Ensure international cooperation in the monetary field 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 high levels of employment and real incomes and the development of 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 discrimination in this area.
- Help build a multilateral payments system for ongoing transactions between member countries and to remove restrictions on currency exchanges that impede the growth of international trade.
- Provide support to fund member states by providing funds from the fund to solve temporary problems in the economy.
- In accordance with the above, shorten the duration and reduce the degree of imbalance in the international balances of the accounts of its members.
The role of the International Monetary Fund
The IMF helps countries develop their economies and implement certain economic projects through three main functions - lending, technical assistance and surveillance.
Providing loans. IMF provides financial assistance low-income countries experiencing balance of payments problems under the Poverty Reduction and Growth Facility (PRGF) programs and, for temporary needs resulting from external shocks, under the Exogenous Shocks Facility (ESF) program. Interest rate PRGF and ESF are concessional (only 0.5 percent), and loans are repaid within 10 years.
Other functions of the IMF:
- assistance international cooperation in monetary policy
- expansion of world trade
- stabilization of monetary exchange rates
- consulting debtor countries
- development of international financial statistics standards
- collection and publication of international financial statistics
Basic 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 “golden” 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 a member country's national currency to provide credit to other countries, that country's reserve share increases accordingly. The outstanding amount of loans provided by a member country to the Fund under the loan agreements of the NHS and NHS constitutes its credit position. The reserve share and the lending position together constitute the “reserve position” of an IMF member country.
2. Credit shares. Funds in foreign currency that can be acquired by a member country in excess of the reserve share (if fully used, the IMF's holdings in the country's currency reach 100% of the quota) are divided into four credit shares, or tranches (Credit Tranches), each constituting 25% of the quota . Member countries' access to IMF credit resources within the framework of credit shares is limited: the amount of a country's currency in the IMF's assets cannot exceed 200% of its quota (including 75% of the quota contributed by subscription). Thus, the maximum amount of credit that a country can receive from the Fund as a result of using reserve and credit 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 are in many cases used in amounts exceeding the limit fixed in the charter. Therefore, the concept of “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 the member country with a guarantee that, within a certain amount and during the term of the agreement, subject to the specified conditions, the country can freely receive foreign currency from the IMF in exchange for national currency. This practice of providing loans is the opening of a line of credit. While the use of the first credit share can be carried out in the form of an outright purchase of foreign currency after the Fund approves its request, the allocation of funds for the account of the upper credit shares is usually carried out through arrangements with member countries for reserve credits. From the 50s to the mid-70s, agreements on stand-by loans 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 intended to provide loans for longer periods and in larger amounts in relation to quotas than within the framework of conventional 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 specified intervals - once every six months, quarterly or (in some cases) monthly. The main purpose of stand-by loans 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 severity increases as they move from one loan share to another. Certain conditions must be met before receiving a loan. The obligations of the borrowing country, providing for its implementation of relevant financial and economic activities, are recorded in the “Letter of Intent” or Memorandum of Economic and Financial Policies sent to the IMF. The progress in fulfilling obligations by the country receiving the loan is monitored by periodically assessing the special performance criteria provided for in the agreement. These criteria can be either quantitative, relating to certain macroeconomic indicators, or structural, reflecting institutional changes. If the IMF considers that a country is using a loan in conflict with the goals of the Fund and is not fulfilling its obligations, it may limit its lending and 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's activities focus on relatively short-term macroeconomic crises. The World Bank provides loans only to poor countries, the IMF can provide loans to any of its member countries that lack foreign exchange to cover short-term financial obligations.
Structure of governing bodies
The highest governing body of the IMF is the Board of Governors, in which each member country is represented by a governor and his deputy. These are usually finance ministers or central bankers. The Council is responsible for resolving key issues of the Fund’s activities: amending the Articles of Agreement, admitting and expelling member countries, determining and revising their shares in the capital, and electing executive directors. Governors usually meet in session once a year, but may hold meetings and vote by mail at any time.
The authorized capital is about 217 billion SDR (as of January 2008, 1 SDR was equal to approximately 1.5 US dollars). It is formed by contributions from member states, each of which usually pays approximately 25% of its quota in SDRs or in the currencies of other members, and the remaining 75% in its own 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 appointed 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 groups are formed by countries with similar interests and usually from the same region, such as French-speaking countries in 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); Great Britain - 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 combined 60.35% of votes in the IMF. The share of other countries, making up over 84% of the Fund's membership, accounts for only 39.65%.
The IMF operates on the principle of a “weighted” number of votes: the ability of member countries to influence the Fund’s activities through 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 SDR of the amount of this contribution. If a country bought (sold) SDRs received during the initial issue of SDRs, the number of its votes increases (decreases) by 1 for every 400 thousand purchased (sold) SDRs. This adjustment is made by no more than 1/4 of the number of votes received for the country's contribution to the capital of the Fund. This arrangement ensures a decisive majority of votes for the leading states.
Decisions in the Board of Governors are usually made by a simple majority (at least half) of the votes, and on important issues of an operational or strategic nature - by a “special majority” (70 or 85% of the votes of member countries, respectively). Despite a slight reduction in the share of voting power of the US and EU, 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 leading Western countries, has the opportunity to exercise control over the decision-making process in the IMF and direct its activities based on their interests. With coordinated action, developing countries are also able to prevent decisions that do not suit them. However, achieving consistency across a large number of disparate countries is difficult. At the Fund's April 2004 meeting, the intention was expressed to "enhance the ability of developing countries and countries with economies in transition to participate more effectively in the decision-making machinery of the IMF."
The International Monetary and Financial Committee (IMFC) plays a significant role in the organizational structure of the IMF. 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 twice a year. This committee is an advisory body of the Board of Governors and has no 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 global monetary system and the activities of the IMF; submits to the Board of Governors proposals for amendments to the IMF's Articles of Agreement. 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).
Board of Governors (1999) The Board of Governors delegates many of its powers to the Executive Board, a directorate that is responsible for the conduct of the affairs of the IMF, which includes a wide range of political, operational and administrative issues, in particular the provision of loans to member countries and overseeing their exchange rate policies.
The IMF Executive Board elects a Managing Director for a five-year term, who heads 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 is John Lipsky (USA). The head of the IMF permanent mission in Russia is Odd Per Brekk.
The International Monetary Fund, IMF, is primarily a specialized agency of the United Nations (UN), headquartered in Washington, USA. It is worth noting that although the IMF was created with the support of the UN, it is an independent organization.
The International Monetary Fund was created relatively recently - at the Bretton Woods Conference, on monetary and financial issues on July 22, 1944, the basis of the agreement was developed ( IMF Charter).
The most significant contributions to the development of the IMF concept were made by John Maynard Keynes, who headed the British delegation, and Harry Dexter White, a senior official at the US Treasury Department. The final version of the agreement was signed by the first 29 states on December 27, 1945 - the official date of the creation of the IMF. The IMF began operations on March 1, 1947, as part of the Bretton Woods system. In the same year, France took out its first loan. Currently, the IMF unites 187 countries, and its structures employ 2,500 people from 133 countries.
The IMF provides short- and medium-term loans when there is a deficit in the state's balance of payments. The provision of loans is usually accompanied by a set of conditions and recommendations aimed at improving the situation.
The IMF's policies and recommendations regarding developing countries have been repeatedly criticized, the essence of which is that the implementation of recommendations and conditions are ultimately not aimed at increasing the independence, stability and development of the national economy of the state, but only tying it to international financial flows.
international monetary fund lending
Main goals and functions of the IMF and structure of governing bodies
The main objectives of the International Monetary Fund are:
1. “the need to promote international cooperation in the monetary and financial sphere”;
2. “promoting the expansion and balanced growth of international trade” in the interests of developing productive resources, achieving high levels of employment and real incomes of member states;
3. “ensuring the stability of currencies, maintaining orderly monetary relations among member states” and striving to prevent “currency depreciation in order to gain competitive advantages”;
4. providing assistance in creating a multilateral settlement system between member states, as well as in eliminating currency restrictions;
5. temporary provision of foreign currency funds to Member States to enable them to “correct imbalances in their balance of payments.”
The main functions of the IMF are:
1. promoting international cooperation in monetary policy
2. expansion of world trade
3. lending
4. stabilization of monetary exchange rates
5. consulting debtor countries
6. development of standards for international financial statistics
7. collection and publication of international financial statistics
The highest governing body of the IMF is the Board of Governors, in which each member country is represented by a governor and his deputy. These are usually finance ministers or central bankers. The Council is responsible for resolving key issues of the Fund’s activities: amending the Articles of Agreement, admitting and expelling member countries, determining and revising their shares in the capital, and electing executive directors. Governors usually meet in session once a year, but may hold meetings and vote by mail at any time.
The authorized capital is about 217 billion SDR (special unit for the right to borrow) (as of January 2011, 1 SDR was equal to approximately 1.5 US dollars). It is formed by contributions from member states, each of which usually pays approximately 25% of its quota in SDRs or in the currencies of other members, and the remaining 75% in its own national currency. Based on the size of quotas, votes are distributed among member countries in the governing bodies of the IMF.
The largest number of votes in the IMF (as of June 16, 2010) are: USA - 17.8%; Germany - 5.99%; Japan - 6.13%; Great Britain - 4.95%; France - 4.95%; Saudi Arabia - 3.22%; Italy - 4.18%; Russia - 2.74%. The share of 15 EU member countries is 30.3%, 29 member countries of the Organization for Economic Cooperation and Development have a combined 60.35% of votes in the IMF. The share of other countries, making up over 84% of the Fund's membership, accounts for only 39.75%.
The IMF operates on the principle of a “weighted” number of votes: the ability of member countries to influence the Fund’s activities through 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 SDR of the amount of this contribution. If a country bought (sold) SDRs received during the initial issue of SDRs, the number of its votes increases (decreases) by 1 for every 400 thousand purchased (sold) SDRs. This adjustment is made by no more than 1/4 of the number of votes received for the country's contribution to the capital of the Fund. This arrangement ensures a decisive majority of votes for the leading states.
Decisions in the Board of Governors are usually made by a simple majority (at least half) of the votes, and on important issues of an operational or strategic nature - by a “special majority” (70 or 85% of the votes of member countries, respectively).
Despite a slight reduction in the share of voting power of the US and EU, 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 leading Western countries, has the opportunity to exercise control over the decision-making process in the IMF and direct its activities based on their interests. With coordinated action, developing countries are also able to prevent decisions that do not suit them. However, achieving consistency across a large number of disparate countries is difficult, so the intention was to “enhance the ability of developing countries and countries with economies in transition to participate more effectively in the decision-making machinery of the IMF.”
The International Monetary and Financial Committee plays a significant role in the organizational structure of the IMF. It consists of 24 IMF governors, including from Russia, and meets twice a year. This committee is an advisory body of the Board of Governors and has no power to make policy decisions. However, it performs important functions:
ь directs the activities of the Executive Council;
b develops strategic decisions related to the functioning of the global monetary system and the activities of the IMF;
b submits to the Board of Governors proposals for amendments to 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 World Bank and the Fund.
The Board of Governors delegates many of its powers to the Executive Board, a directorate that is responsible for conducting the affairs of the IMF, which includes a wide range of political, operational and administrative issues, such as providing loans to member countries and overseeing their policies. exchange rate.
The IMF Executive Board elects a Managing Director for a five-year term, who heads the Fund's staff (as of March 2009 - about 2,478 people from 143 countries). He must be a representative of one of the European countries. Managing Director (since November 2007) - Dominique Strauss-Kann (France), his first deputy - John Lipsky (USA).
The head of the IMF permanent mission in Russia is Neven Mathes.
Manager. Elected by the Executive Board, the IMF Governor chairs the Executive Board and is the organization's chief of staff. Under the direction of the Executive Board, the Governor is responsible for the day-to-day operations of the IMF. The manager is appointed for five years and may be re-elected for a subsequent term.
Staff. The Articles of the Agreement require personnel appointed to the IMF to demonstrate the highest standards of professionalism and technical competence, and reflect the internationality of the organization. Approximately 125 nations are represented among the organization's 2,300 employees.
International Monetary Fund- IMF, a financial institution of the United Nations. One of the main functions of the IMF is to issue loans to states to compensate for balance of payments deficits. 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 UN. The head office is located in the capital of the United States - Washington.
The International Monetary Fund was founded in July 44 of the last century, but only in March 1947 it began its practice, issuing short-term and medium-term loans to needy countries in conditions of a lack of the country's balance of payments.
The IMF is an independent organization operating according to its own charter, the goal is to establish cooperation between countries in the field of monetary finance, as well as stimulate international trade.
Functions of the IMF boils down to the following steps:
- promoting cooperation between states on financial policy issues;
- growth in the level of trade in the world services market;
- providing loans;
- balancing;
- advising debtor states;
- development of an international framework for 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 using a special form “Special privileges for borrowing.” The IMF's resources come from the signatures, or “quotas,” of the fund's participants.
At the top of the IMF pyramid is the general board of managers, which includes the head and his deputy of the fund's member country. Most often, the role of manager is the minister of finance of the state, or the governor of the Central Bank. 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 policies and carrying out its actions. The privilege of choosing the head is enjoyed by 8 countries that have the largest quota in the fund. These include almost all countries from the G8.
The IMF's Executive Board selects a steward for the next five years to lead the overall staff. From the second summer month 2011, the head of the IMF is Frenchman Christine Lagarde.
Impact of the International Monetary Fund on the global economy
The IMF issues loans to countries in a couple of cases: to pay off payment deficits and maintain macroeconomic stability of states. A country that needs additional foreign currency purchases it or borrows it, providing in exchange the same amount, only in the currency that is official in that country and is deposited into the IMF current account.
In order to strengthen international economic cooperation within the framework international relations and the creation of prosperous economies, in 1944, organizations such as the International Monetary Fund and the World Bank were conceived. 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 by providing short- 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 and also reduce the poverty threshold.
By collaborating in a variety of areas, the International Monetary Fund and the World Bank are helping countries reduce poverty by easing debt burdens. 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 vectors:
- cooperation with the Government of the Republic of Belarus on programs in the field of the national economy, focusing on tax, monetary and trade policies;
- 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 provided with 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 had paid the IMF in full.
The second time, the country's leadership turned to the IMF in 2008, with a request to again provide lending through the stand-by system. The financing program was agreed upon in January 2009 and the Republic of Belarus was allocated 2.46 billion US dollars 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 foreign exchange market, the stability of the financial system, avoid a balance of payments deficit and do the impossible - reduce it, reducing it to a minimum.
The Belarusian authorities are negotiating to receive a new IMF loan in the amount of $3 billion at 2.3% for a period of 10 years. To allocate a loan, the IMF calls on Belarus to implement a comprehensive strategy of economic reforms.
At the beginning of 2017, the main issues of negotiations were changing housing and communal services tariffs and improving the work of the public sector of the economy. The IMF calls for a number of reforms in relation to state-owned enterprises in order to increase their productivity and efficiency, and also recommends defining a sequence of measures to achieve full cost recovery in the housing and communal services sector.
Increases in tariffs for housing and communal services and the privatization of state-owned enterprises are key topics in negotiations with the IMF. For its part, the country’s foreign policy department believes that in matters of increasing tariffs in housing and communal services, as well as privatization of the public sector, it is necessary to move step by step.
As the IMF notes, great importance has an improvement in the country's business climate, including through accession to the WTO and the development of competition in product markets. The country also needs to pursue prudent monetary policy to maintain macroeconomic and financial stability.
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