Question

Mention any three lending programs of IMF.

Answer 1

(1) Establishment of monetary reserve fund:

1. The Fund has played a major role in achieving the sizeable stock of the national currencies of different countries.
2. To meet the foreign exchange requirements of the member nations, IMF uses its stock to help the member nations to meet foreign exchange requirements.

(2) Monetary discipline and cooperation:

1. The IMF has shown keen interest in maintaining monetary discipline and cooperation among the member countries.
2. To achieve this objective, it has provided assistance only to those countries which make sincere efforts to solve their problems.

(3) Special interest in the problems of UDCs:

1. The notable success of the Fund is the maintenance of special interest in the acute problems of developing countries.
2. The Fund has provided financial assistance to solve the balance of payment problem of UDCs.
3. However, many UDCs continue to be UDCs, while the developed countries have achieved substantial growth.