Imf Articles Of Agreement Wiki

The role of the IMF was profoundly altered by the variable exchange rates after 1971. She turned to the economic policy study of countries under IMF credit agreements to determine whether the lack of capital was due to economic fluctuations or economic policies. The IMF also examined what types of government policies would ensure economic recovery. [19] One of the IMF`s particular concerns was to prevent financial crises such as those in Mexico in 1982, Brazil in 1987, East Asia in 1997-1998, and Russia in 1998 from spreading and threatening the entire global financial and monetary system. The challenge was to promote and implement policies that reduce the frequency of crises in emerging economies, particularly in middle-income countries, which are vulnerable to massive capital outflows. [21] Instead of merely monitoring exchange rates, their function has become to monitor the overall macroeconomic performance of Member States. Their role has become much more active because the IMF now manages economic policy and not just exchange rates. On 25 March 2013, to the detriment of the Cypriots, the troika approved a €10 billion international rescue plan for Cyprus: closing the country`s second largest bank; to levy a single tax on uninsured bank deposits of the Bank of Cyprus. [46] [47] No insured bonds of EUR 100 000 or less should be affected as part of a new bail-in. [48] [49] „Based on the needs of the governments of the richest corporations, the IMF has allowed countries in crisis to borrow to avoid default on their repayments.

Caught in the downward spiral of debt, developing countries will soon have no choice but to borrow new debt to repay the old debt. Before granting them new loans at higher interest rates, the future heads of state and government asked the IMF to intervene with the guarantee of the repayment of arrears and asked for an agreement signed with these countries. The IMF has therefore agreed to resume the flow of the „financial pump”, provided that the countries concerned first use this money to compensate banks and other private lenders, while restructuring their economies at the discretion of the IMF: here are the famous conditionalities described in the structural adjustment programs. The IMF and its ultraliberal experts have taken control of the economic policies of borrowing countries. A new form of colonization was thus introduced. It was not even necessary to set up an administrative or military presence; Only debt has maintained this new form of submission. » [144] 4. . . .