Where is the IMF headquarters? IMF: transcript. Goals, objectives and role of the organization in the world. Official IMF goals

The International Monetary Fund (IMF) is an intergovernmental monetary organization with the status specialized institution UN. The fund's mission is to promote international currency cooperation and trade, coordinating the monetary and financial policies of member countries, providing them with loans to settle balances of payments and maintain exchange rates.

The decision to create the IMF was made by 44 countries at a conference on monetary and financial issues held in Bretton Woods (USA) from July 1 to July 22, 1944. On December 27, 1945, 29 states signed the foundation's charter. The authorized capital amounted to $7.6 billion. The IMF began its first financial operations on March 1, 1947.

There are 184 countries that are members of the IMF.

The IMF has the authority to create and provide international financial reserves to its members in the form of " special rights borrowing" (SDR). SDR is a system for providing mutual loans in conventional monetary units - SDR, equal in gold content to the US dollar.

The fund’s financial resources are formed mainly through subscriptions (“quotas”) of IMF member countries, total amount which currently stands at about $293 billion. Quotas are determined based on the relative size of the economies of member states.

The IMF's main financial role is to provide short-term loans. Unlike the World Bank, which provides loans to poor countries, the IMF lends only to its member countries. Fund loans are provided through normal channels to member states in the form of tranches, or shares, representing 25% of the relevant member state's quota.

Russia signed an agreement to join the IMF as an associate member on October 5, 1991, and on June 1, 1992, officially became the 165th member of the IMF by signing the Fund's Charter.

On January 31, 2005, Russia fully repaid its debt to the International Monetary Fund, making a payment in the amount of 2.19 billion special drawing rights (SDR), which is equivalent to $3.33 billion. Thus, Russia saved $204 million, which it had to pay if the debt to the IMF was repaid according to the schedule before 2008.

The highest governing body of the IMF is the Board of Governors, in which all member countries are represented. The Council holds its meetings annually.

Day-to-day operations are led by an Executive Board of 24 executive directors. Five largest shareholders IMF (USA, UK, Germany, France and Japan), as well as Russia, China and Saudi Arabia, have their own seats on the Council. The remaining 16 executive directors are elected for two-year terms by country groups.

The Executive Board elects a Managing Director. The Managing Director is the Chairman of the Board and Chief of Staff of the IMF. He is appointed for a five-year term with the possibility of re-election.

According to the existing agreement between the United States and EU countries, the IMF is traditionally headed by Western European economists, while the chairman of the World Bank is chosen by the United States. Since 2007, the procedure for nominating candidates has been changed - any of the 24 members of the board of directors has the opportunity to nominate a candidate for the post of managing director, and he can be from any member country of the fund.

The first managing director of the IMF was Camille Goutte, a Belgian economist and politician, former finance minister, who headed the Fund from May 1946 to May 1951.

IMF, or World Monetary Fund is a special institution created by the United Nations (UN) that helps improve international cooperation in the field of economics and finance, as well as regulating the stability of currency relations.

In addition, the IMF is interested in issues of developing trade, general employment, and improving the standard of living of the population of countries.

This structure is managed by 188 countries that are members of the organization. Despite the fact that the Fund was created by the UN as one of its divisions, it operates separately and has a separate Charter, management and financial systems.

History of the creation and development of the Foundation

In 1944, at a conference held in Bretton Woods in New Hampshire (USA), a commission of 44 countries decided to create the IMF. The prerequisites for its emergence were the following problematic issues:

• formation of favorable “soil” for international cooperation on the world stage;
• the threat of repeated devaluation;
• “reanimation” of the world monetary system from the consequences of World War II;
• and others.

However, the Foundation was officially created only in 1945. At the time of its creation there were 29 participating countries. The IMF became one of the international financial organizations established at that conference.

The other was the World Bank, the scope of which is somewhat different from the work areas of the Fund. But these two systems successfully interact with each other, and also assist each other in solving various issues on the highest level.

Goals and objectives of the IMF

When the IMF was created, the following goals of its activities were defined:

• development of cooperation between countries in the field of international finance;
• stimulation of international trade;
• control over the stability of currency relations;
• participation in the creation of a universal payment system;
• provision of mutual assistance between IMF member states to those of them who are in difficult financial situations (with guaranteed fulfillment of the terms of provision financial assistance).

The most important task of the fund is to regulate the balance of monetary and financial interaction between countries, as well as to prevent preconditions for the emergence of crisis situations, control over the level of inflation, and the situation on the foreign exchange market.

A study of financial crises of past years shows that countries, being in such a situation, become dependent on each other, and the problems of various sectors of one country can affect the state of a given sector of another country, or negatively affect the situation as a whole.

In this case, the IMF exercises supervision and control, and also provides timely financial assistance, allowing countries to pursue the necessary economic and monetary policies.

IMF governing bodies

The IMF developed under the influence of changes in the general economic situation in the world, so the improvement of the management structure occurred gradually.

So, the modern management of the IMF is represented by the following bodies:

• The top of the system is the Board of Governors, which consists of two representatives from each participating country: the governor and his deputy. This governing body meets once a year at the Annual Meeting of the IMF and the World Bank;
• The next link in the system is represented by the International Monetary and Financial Committee (IMFC), which consists of 24 representatives who meet twice a year;
• The IMF Executive Board, which is represented by one member from each country, works daily and carries out its functions at the fund's headquarters in Washington.

The management system described above was approved in 1992, when former members of the Soviet Union joined the IMF, significantly increasing the number of fund participants.

Structure of the IMF

Five most large states(UK, France, Japan, USA, Germany) appoint executive directors, and the remaining 19 countries choose the rest.

The first person of the foundation is simultaneously the head of staff and the chairman of the executive board of the foundation, has 4 deputies, and is appointed by the board for a period of 5 years.

At the same time, managers can nominate candidates for this post, or self-nominate.

Basic lending mechanisms

Over the years, the IMF has developed several lending methods that have been tested in practice.

Each of them is suitable for a certain financial and economic level, and also provides an appropriate influence on him:

• Non-concessional lending;
• Stand-by loan (SBA);
• Flexible credit line (FCL);
• Preventive support and liquidity line (LPL);
• Extended Credit Facility (EFF);
• Rapid Financing Instrument (RFI);
• Preferential lending.

Participating countries

In 1945, the IMF consisted of 29 countries, but today their number has reached 188. Of these, 187 states are recognized as participants in the fund in full, and one - partially (Kosovo). Full list IMF member countries are freely published online along with the dates of their entry into the fund.

Conditions for countries to receive a loan from the IMF:

• The main condition for obtaining a loan is to be a member of the IMF;
• An existing or possible crisis situation in which there is no possibility of financing the balance of payments.

The loan provided by the fund makes it possible to implement measures to stabilize the crisis situation, carry out reforms to strengthen the balance sheet and improve the economic situation of the state as a whole. This will become a guaranteed condition for the repayment of such a loan.

The Fund's role in the global economy

The International Monetary Fund plays a huge role in the global economy, expanding the spheres of influence of mega-corporations to countries with developing economies and crisis financial situation, controlling foreign exchange and many other aspects of the macroeconomic policies of states.

Over time, the development of the fund is heading towards turning it into international body control over the financial and economic policies of many countries. It is possible that the reforms will lead to a wave of crises, but they will only benefit the fund, increasing the number of loans several times.

IMF and World Bank - what's the difference?

Although the IMF and The World Bank were founded at approximately the same time, and have common goals, there are significant differences in their activities that need to be mentioned:

• The World Bank, unlike the IMF, is concerned with improving living standards by financing hotel sectors on a long-term basis;
• Financing of any activities occurs not only at the expense of the participating countries, but also through the issuance of securities;
• In addition, the World Bank covers a wider range of disciplines and areas of action than the International Monetary Fund.

Despite significant differences, the IMF and the World Bank are actively collaborating on various areas, for example, in helping countries below the poverty line by holding joint meetings and jointly analyzing their crisis situations.

International Monetary Fund (IMF)

An intergovernmental organization created to provide financial assistance in the form of foreign currency loans, as well as providing financial advice.

The IMF was formed at the end of 1944 during the Bretton Woods Conference, but actually began to function only in 1946. The purpose of creating the fund is to increase the stability of the monetary and financial system, as well as strengthen trade ties between the economies of different countries.

The IMF's financial resources are generated through systematic cash contributions made by the member countries of this organization, and the size of the quota is determined by the level of economic development of a particular state. The same parameter affects the maximum volume Money, which can be issued by the fund as a loan to a specific country. The size of the quota (the amount of money contributed to the fund) directly determines the number of votes that a participating country receives when voting.

Features of providing financial assistance

Acting as a guarantor of the stability of the global financial system, the IMF provides assistance to those countries whose economies, for one reason or another, are unstable. Along with consultations and meetings, the IMF provides financial assistance in the form of loans, which are issued for a period of 3 to 5 years at a certain interest rate. The entire loan amount is divided into certain parts - tranches, which allows the IMF to better monitor the borrower’s fulfillment of its loan obligations.

Before issuing a loan, representatives of the Fund must verify the reality of the threat of a crisis in the country, for which economic indicators are analyzed: unemployment and inflation levels, prices, tax revenues, and so on. Based on the results of the statistical data, a report is compiled, which is discussed at the meeting of the IMF Executive Board. The decision to issue a loan is made on the basis of an open vote of representatives of the Fund’s member countries.

The task of the International Monetary Fund is to maintain the stability of the global financial and economic system. Along with this, the IMF is also tasked with collecting and processing statistical data relating to international payments, foreign exchange reserves, inflation, public finances, monetary circulation and foreign exchange resources. The fundamental objectives of the International Monetary Fund are:

• Expansion and balanced growth of international trade, which improves the economic performance of each of the fund’s member states.
• Development of international cooperation in the field of monetary and financial relations through consultations and meetings in order to solve international monetary and financial problems.
• Maintaining the stability of the world's leading currencies, preventing devaluation and other negative aspects in different countries.
• Creation of a multilateral system of international settlements for trade transactions in order to eliminate restrictions and obstacles in the development of the world economy.
• Correcting imbalances in the balance of payments of emerging economies by providing them with loans from the Fund's general resources.

Currently, the IMF includes over 180 countries, including the Russian Federation, which became a member of the fund in 1992. In 2005, Russia repaid its debt to the International Monetary Fund ahead of schedule, thanks to which it acquired the status of a creditor, while simultaneously increasing its contribution quota and strengthening its influence in the organization.

Evgeny Borodin, consultant

General information

The International Monetary Fund (IMF) is a specialized UN agency established at the world monetary and financial conference in Bretton Woods (USA, New Hampshire) in July 1944, at which its participants adopted the articles of agreement of the IMF, which serve as its charter. The foundation began its practical activities in May 1946 - it included 39 countries. The USSR took part in the Bretton Woods Conference, but due to the outbreak of the Cold War, the articles of the IMF agreement were not ratified. For the same reason, Poland, Czechoslovakia and Cuba left the IMF in the 50-60s.

During "perestroika" G7" the decision was made: European Union coordinates assistance to countries Eastern Europe, and directly from the IMF to the USSR (then to Russia and the CIS countries). On June 1, 1992, Russia signed the articles of agreement of the IMF, and it officially became a member of this organization.

Today, the IMF includes 185 countries, almost all UN member countries except Cuba, North Korea, Andorra, Liechtenstein, Monaco, Nauru and Tuvalu.

The goal of the IMF is to regulate the monetary and credit relations of member states and provide them with assistance in case of balance of payments deficit by providing short- and medium-term loans in foreign currency.

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. All managers meet once a year at the Annual Meetings of the IMF and the World Bank.

The IMF's policies are controlled by the International Monetary and Financial Committee (IMFC), whose 24 members are the finance ministers or central bank governors of countries and groups of countries represented on the Executive Council.

The IMF Executive Board is responsible for most decisions and consists of 24 executive directors. Russia is represented by Mozhin A.V. and Lushin A.. The eight countries with the largest quotas in the Fund - the USA, Japan, Germany, France, Great Britain, China, Russia and Saudi Arabia - appoint their directors. The remaining 176 member states are organized into 16 groups, each of which elects one Executive Director.

The Executive Board elects a managing director for a five-year term (since September 2007 - Dominique Strauss-Kahn, France).

By agreement between the countries that are the founders of the Fund, the managing director must be a representative of one of European countries, and the director of the World Bank is a US citizen.

The IMF has approximately 2,700 staff and is headquartered in Washington.. The Foundation has representative offices in more than 80 countries around the world, including in Russia.

The IMF receives income from interest and fees on loans and uses the income to cover financing costs, pay administrative expenses, and accumulate insurance balances. In fiscal year 2007, revenue was SDR 111 million below expenses. The net revenue shortfall primarily reflects a significant decline in outstanding IMF lending, from a peak of SDR 70 billion in September 2003 to SDR 7.3 billion at the end of fiscal year 2007 and due to low demand for new IMF lending, as well as early repayment loans by some member states in last years.

Record-breaking volumes of borrowing from the IMF - $120 billion - occurred in 1997-1999. The largest recipients of financial assistance during this period were the countries most affected by financial crises: South Korea, Indonesia, Brazil, and Russia.

Conditions for membership in the IMF and lending mechanisms

Upon joining the IMF, each member country pays a subscription fee called a “quota.” Countries pay 25% of their quota in the form of reserve assets, so-called. HAPPY BIRTHDAY, or the main currency (US dollar, euro, Japanese yen, pound sterling). If necessary for lending purposes, the IMF may request from a member country the balance, payable in its own currency. The quota size is reviewed every 5 years. The total amount of contributions from Member States amounts to authorized capital The IMF, which is used to provide temporary assistance to countries experiencing financial difficulties.

The quota is calculated based on data on the volume of a country's GDP, as well as on the basis of a country's existing gold and foreign exchange reserves, and determines the amount that it can borrow from the IMF and its voting rights. The total amount of quotas in the IMF is equivalent to SDR 217.4 billion. The United States has the largest quota of 37.149 billion SDRs or 371,743 (16.77%) votes, Russia has 5.945 billion SDRs or 59,704 (2.69%) votes. However, the new managing director of Strauss-Kann, who was not supported by Russia during his appointment, proposes to reduce Russia’s quota to 1.7–1.8% and transfer its influence to the country level Persian Gulf, Thailand and Argentina. Taken together, the United States and the countries of the European Union currently have 50% of the total quota when voting in the IMF and, in fact, can carry out any decision regardless of the opinions of other countries combined, so reducing Russia’s quota, by and large, has no practical significance.

Basic mechanisms and terms of lending

When providing financial assistance, the Fund requires the borrowing country to fulfill certain conditions regarding its currency system, foreign trade, and state budget balance, and the degree of their severity increases as the transition from one tranche to another. The obligations of the borrowing country are recorded in a Letter of Intent or Memorandum of Economic and Financial Policies sent to the IMF. Progress in fulfilling obligations is monitored through periodic evaluation. 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 and often political pressure on borrowing countries.

Russia's relationship with the IMF

In January 1992, the Russian Government officially applied to the IMF for financial assistance in the amount of $6 billion to create a stabilization fund. The first assistance agreement was signed by M. Camdessus and E. Gaidar at the beginning of July 1992. On August 5, the first tranche of $1 billion was provided, which was used to replenish foreign exchange reserves, make payments on external debt and intervene in the foreign exchange market. However, Russia did not receive subsequent tranches of the reserve loan in 1992. Funds ($6 billion) intended for the ruble stabilization fund were not allocated either. The IMF explained the refusal by saying that Russian government evaded the implementation of the stabilization program agreed upon with him, the volume of GDP decreased by 14.5%, the federal budget deficit, instead of the planned level of 5% of GDP, reached (according to the IMF methodology) 22.4%, and inflation averaged 20.5% per month.

In June 1993, the IMF offered Russia a second loan of $3 billion. within the framework of the newly created direction - “System Transformation Facility - STF”. Unlike others, the STF loan came with less stringent conditions and required that the borrowing country not impose trade restrictions. However, on September 19, 1993, the IMF suspended the transfer of money to the Russian Federation due to the fact that the Government was unable to contain inflation and reduce budget expenditures. In 1994, negotiations were held with the IMF delegation, as a result of which Russia received the second tranche of a $1.5 billion loan in support of systemic reforms. Following the currency turmoil of the fall of 1994, which culminated in Black Tuesday (October 11, 1994), The government has set a course to suppress inflation as the main macroeconomicgoals, which prompted support from the IMF. This resulted in the provision of a reserve stabilization loan of $6.8 billion in April 1995. The package of agreements with the IMF consisted not only of the requirement to reduce inflation to 2% per month, but also the state budget deficit to 8% of GDP. Monitoring was to be carried out every month (previously it was carried out quarterly) by a special working group consisting of representatives of the Ministry of Finance, the Central Bank and IMF experts.

From the point of view of Russia's external economic indicators, 1997 was the most successful year. In 1998, the economic situation in Russia deteriorated sharply due to the fall in energy prices on world markets. As a result, the balance of payments on the current account turned from active to passive in the first half of 1998 with a deficit of $5.1 billion. In order to balance the state budget and prevent devaluation of the ruble, the Government developed an anti-crisis program and turned to the IMF for financial assistance. The agreement with the IMF provided for the provision of a loan in four tranches, but the first loan provided could no longer save the situation and on August 17, 1998, the country declared a default.

After the default, Russia did not receive financial assistance from the IMF. In 2005, the Government repaid its debt to the IMF ahead of schedule, paying $3.3 billion.

IMF loans to Russia and their conditions

In recent years, the IMF's policies and recommendations towards developing countries have often been criticized, the essence of which is that the implementation of recommendations and conditions is ultimately not aimed at increasing self-reliance and development national economy, but only tie it to international financial flows.

Milton Friedman, American economist, laureate Nobel Prize in Economics, believes that IMF policy has become a destabilizing factor in the markets of developing countries. And not because of the conditions that he imposed on his clients, but primarily because he is trying to protect private investors from their own mistakes. Mexico's bailout during the 1995 crisis fueled crises in other emerging markets. “It would not be an exaggeration to say,” emphasizes M. Friedman, “if the IMF had not existed, then there would have been no East Asian crisis.” This shows that international structures such as the IMF are not able to effectively solve the tasks assigned to them. Some economists have even begun to call for the cessation of the IMF in the form in which it currently exists.

Today, almost no one takes out IMF-related financial loans and therefore new IMF obligations have dropped sharply: from SDR 8.3 billion in fiscal year 2006 to SDR 237 million in 2007, and those who previously received financial assistance from the IMF are trying to repay early debts. In fiscal year 2007, nine member countries: Bulgaria, Haiti, Indonesia, Malawi, Serbia, Uruguay, Philippines, Central African Republic, Ecuador, repaid their current obligations to the IMF ahead of schedule, totaling SDR 7.1 billion.

The International Monetary Fund (IMF) is an intergovernmental organization designed to regulate monetary relations between states and provide financial assistance to member countries to eliminate currency difficulties caused by imbalances in the balance of payments. The IMF was established at the International Monetary and Financial Conference (July 1-22, 1944) in Bretton Woods (USA, New Hampshire). The Foundation began its practical activities on March 1, 1947.

The USSR also took part in the Bretton Woods Conference. However, subsequently, due to " cold war"between East and West, he did not ratify the Agreement on the formation of the IMF. For the same reason, during the 50-60s, Poland, Czechoslovakia and Cuba left the IMF. As a result of deep socio-economic and political reforms in the early 90s former socialist countries, as well as states that were previously part of the USSR, joined the IMF (with the exception of the Democratic People's Republic of Korea and Cuba).

Currently, 182 countries are members of the IMF (see Fig. 4). Any country that conducts independent foreign policy and ready to accept the rights and obligations provided for by the IMF Charter.

The official objectives of the IMF are to:

• promote balanced growth of international trade;
• maintain the stability of currency exchange rates;
• promote the creation of a multilateral settlement system for current transactions between members of the Fund and the elimination of currency restrictions that impede the growth of international trade;
• provide member countries with credit resources that allow them to regulate the imbalance of temporary payments without the use of restrictive measures in the field of foreign trade and payments;
• serve as a forum for consultation and cooperation on international monetary issues.

Responsible for the smooth operation of the global currency and payment system, the Fund devotes Special attention the state of liquidity on a global scale, i.e. the level and composition of reserves available to member states and intended to cover trade and payment needs. One of important functions The Fund also provides additional liquidity to its members through the distribution of Special Drawing Rights (SDRs). SDR (or SDR) is an international monetary unit of account used as a conventional scale for measuring international requirements and obligations, establishing currency parity and exchange rate, as an international means of payment and reserve. The SDR value is determined based on average cost five major currencies of the world (before January 1, 1981 - sixteen currencies). The specific weight of each currency is determined taking into account the country's share in international trade, but for the US dollar it is taken into account specific gravity in international payments. To date, 21.4 billion SDRs have been issued with a total value of about 29 billion US dollars, which is about 2% of all reserves.

The Fund has significant general resources to finance temporary disequilibria in the balance of payments of its members. To use them, a member must provide the Fund with a compelling justification for the need, which may be related to the balance of payments, reserve position, or changes in reserves. The IMF provides its resources on the basis of equality and non-discrimination, taking into account the social and domestic political objectives of member countries. The Fund's policy gives them the opportunity to use IMF financing already at early stage the emergence of balance of payments problems.

At the same time, the Fund’s assistance helps to overcome the imbalance of payments without the use of trade and payment restrictions. The Fund plays a catalytic role, as changes in the policies pursued by states in implementing IMF-supported programs help attract additional financial assistance from other sources. Finally, the Fund acts as a financial intermediary, ensuring the redistribution of funds from those countries where there is a surplus to countries where there is a deficit.

IMF governance structure

1. Supreme governing body is the Board of Governors, in which each member country is represented by a governor and his deputy. In most cases, the Fund's managers are ministers of finance, or heads of central banks, or other persons of similar position. The Board of Governors elects a chairman from among its members. The competence of the council includes decisions on the most important, fundamental issues activities of the IMF, such as the admission and exclusion of members of the Fund, the determination and revision of quotas, the distribution of net income, and the election of executive directors. The Governors meet in session to discuss the activities of the Fund once a year, but they may vote at any time by mail.

The IMF is structured as joint stock company, and therefore the ability of each participant to influence its activities is determined by its share in the capital. In accordance with this, the IMF operates the principle of the so-called “weighted” number of votes: each member country has 250 “basic” votes (regardless of the size of the contribution to the Fund’s capital) and an additional one vote for every 100 thousand SDR units of its share in this capital. In addition, when voting on certain issues, creditor countries receive an additional one vote for every 400 thousand US dollars of loans provided by them on voting day, due to a corresponding reduction in the number of votes of debtor countries. This arrangement leaves the final say in the management of the IMF's affairs to the countries that have invested the most in it.

Decisions in the IMF Board of Governors are mainly made by a simple majority (at least half) of votes, and on the most important issues (for example, amendments to the Charter, establishment and revision of the size of the shares of member countries in capital, a number of issues of the functioning of the SDR mechanism, policy in the field of exchange rates, etc.) by a “special (qualified) majority”, which currently provides for two categories: 70% and 85% of the total votes of member countries.

The current IMF Charter provides that the Board of Governors may decide to establish a new permanent governing body, the Council at the ministerial level of member countries, to oversee the regulation and adaptation of the global monetary system. But it has not yet been created, and its role is played by the 22-member Interim Committee of the Board of Governors on the World Monetary System, established in 1974. However, unlike the proposed Council, the Interim Committee does not have the power to make policy decisions.

2. The Board of Governors delegates many of its powers to the Executive Board, i.e. The Directorate, which is responsible for the conduct of the affairs of the Foundation and operates from its headquarters in Washington.

3. The IMF Executive Board appoints a managing director, who heads the administrative apparatus of the Fund and is in charge of day-to-day affairs. Traditionally, the managing director must be European or (at least) non-American. Since 2000, the Managing Director of the IMF is Horst Keller (Germany).

4. The IMF Committee on Balance of Payments Statistics, which includes representatives of industrialized and developing countries. It develops recommendations for the wider use of statistics in the compilation of balances of payments, coordinates the implementation of a basic statistical survey of portfolio investments and carries out studies on the recording of flows associated with derivative funds.

Capital. The IMF's capital is made up of subscription contributions from member countries. Each country has a quota expressed in SDR. A member country's quota is the most important element of its financial and organizational relationship with the Fund. First, the quota determines the number of votes in the Fund. Secondly, the size of the quota is based on the extent of access of an IMF member to the financial resources of the organization in accordance with established limits. Third, the quota determines the IMF member's share in the allocation of SDRs. The Charter does not provide methods for determining quotas for IMF members. At the same time, from the very beginning, the size of quotas was associated, although not on a rigid basis, with such economic factors as national income and the volume of foreign trade and payments. The Ninth General Review of Quotas used a set of five formulas agreed upon during the Eighth General Review to produce “estimated quotas,” which provide a broad measure of the relative position of IMF members in the global economy. These formulas use economic data on a state's gross domestic product (GDP), current transactions, fluctuations in current receipts, and government reserves.

The United States, being the country with the highest economic performance, made the largest contribution to the IMF, amounting to about 18% of the total amount of quotas (about 35 billion US dollars); Palau, which joined the IMF in December 1997, has the smallest quota and has contributed about US$3.8 million.

Until 1978, 25% of the quota was paid in gold, currently - in reserve assets (SDRs or freely usable currencies); 75% of the subscription amount is in national currency, usually provided to the Fund in the form of promissory notes.

The IMF's Charter provides that, in addition to equity, which is the main source of financing its activities, the Foundation has the opportunity to also use borrowed funds in any currency and from any source, i.e. borrow them both from official bodies and on the private capital market. To date, the IMF has received loans from the treasuries and central banks of member countries, as well as from Switzerland, which was not a member until May 1992, and from the Bank for International Settlements (BIS). As for the private money market, he has not yet resorted to its services.

IMF lending activities. The IMF's financial transactions are carried out only with official bodies of member countries - treasuries, central banks, and currency stabilization funds. The Fund's funds can be made available to its members through a range of approaches and mechanisms, differing mainly in the types of problems of financing the balance of payments deficit, as well as the level of conditions put forward by the IMF. Moreover, these conditions are a composite criterion that includes three separate elements: the state of the balance of payments, the balance of international reserves and the dynamics of the reserve position of countries. These three elements that determine the need for balance of payments financing are considered independent and each of them can form the basis for submitting a request for financing to the Fund.

A country in need of foreign currency purchases freely usable currency, or SDRs, in exchange for an equivalent amount of its domestic currency, which is deposited into an IMF account at the country's central bank.

The IMF charges borrowing countries a one-time fee of 0.5% of the transaction amount and a fee, or interest rate, for the loans it provides, which is based on market rates.

After the expiration of the established period, the member country is obliged to carry out the reverse operation - to buy back its national currency from the Fund, returning to it the borrowed funds. Typically, this operation, which in practice means the repayment of a previously received loan, must be carried out within a period of 3 1/4 to 5 years from the date of purchase of the currency. In addition, the borrowing country must repurchase its excess currency for the Fund ahead of schedule as its balance of payments improves and foreign exchange reserves increase. Loans are also considered repaid if the national currency of the debtor country held by the IMF is purchased by another member state.

Member countries' access to IMF credit resources is limited by certain nuances. According to the original Charter, they were as follows: firstly, the amount of currency received by a member country in the twelve months preceding its new application to the Fund, including the amount requested, should not exceed 25% of the country's quota; secondly, the total amount of a given country’s currency in the IMF’s assets could not exceed 200% of its quota (including 75% of the quota contributed to the Fund by subscription). The revised Charter in 1978 removed the first limitation. This allowed member countries to utilize their ability to obtain currency from the IMF for more than short term than the five years it took before. As for the second condition, in exceptional circumstances its operation may be suspended.

Technical assistance. The International Monetary Fund also provides technical assistance to member countries. It is carried out through sending missions to central banks, ministries of finance and statistical authorities of the countries that requested such assistance, sending experts to these bodies for 2-3 years, conducting an examination of the legislative documents being prepared. Technical assistance is expressed in the IMF's assistance to member countries in the field of monetary, exchange rate policy and banking supervision, statistics, development of financial and economic legislation and personnel training.