This is a ppt on IMF of Economics /International Business...

2. INTERNATIONAL
BUSINESS

3. Abdullsamad Khan
(L4S12MCOM0130)
Faheem Ahmad Rana
(L4S12MCOM2126)
Hafiz Zain-UL-Abideen
(L4S12MCOM2141)
Members

4. IMF is UNO recognized international monetary fund or
reserve which helps its members.
It has 188 members across the all nations but soviet Russia
and its member are not linked with IMF.
All work is done by its board of directors which is made by
board of governors. Every country’s finance minister is as
the governor from his respective country.
IMF

5. Created on July 22, 1944.
Came into existence on December 27, 1945 when 29
countries signed the Articles of Agreement.
The IMF's stated goal was to stabilize exchange rates and
assist the reconstruction of the world’s international
payment system post World War II.
In 1947, France became the first country to borrow from
the IMF
As of January 2012, the largest borrowers from the fund
in order are Greece, Portugal, Ireland, Romania and
Ukraine.
History

6. The IMF was conceived in July 1944, when representatives
of 45 governments meeting in the town of Bretton
Woods, New Hampshire, in the north-eastern United
States, agreed on a framework for international economic
cooperation.
Why was it created?

7. ORDINARY MEMBERS:
All those who became its members subsequently.
ORIGINAL MEMBERS:
All those countries who agreed to be the members of the
fund prior to 31st December,1945.
MEMBERSHIP

8. Any country can become the member of IMF but for
getting eligibility the procedure is adopted by IMF
First of all membership is accepted by board of directors
After accepting membership, board of directors send this
proposal to board of governors with supported all
documents
All documents and subscription and quota amount as per
the terms of membership.
Eligibility for
membership in IMF

9.  To promote international monetary cooperation.
 To facilitate the expansion of international trade.
 To ensure stability to foreign exchange rates.
 To reduce disequilibrium in the international balance of
payments of member countries.
 To promote capital investment in backward and
underdevelopment countries.
Objectives

10.  Providing short terms credit to members for meeting
temporary difficulties due to adverse balance of
payments.
 Reconciling conflicting claims of member countries.
 Providing a reservoir of currencies of member-countries
and enabling members to bor-row on another's currency.
 Credit tranches
 Promoting orderly adjustment of exchange rates.
 Advising member countries on economic, monetary and
technical matters.
Functions

11.  The IMF has shown great interest in the economic
development of under development countries
 The IMF has promoted exchange rate stability and
expansion of world trade.
 It has provided an excellent forum for the discussion and
solution of economic, fiscal and financial problems
having an international impact.
 The IMF has granted undue credit to some countries. Its
insistence on devaluation in some cases proved ill
advised.
 It has been charged as being partial to developed
countries and not helping adequately the under developed
countries.
Operations

12. Membership of the IMF
(Date of entry into force: December 27, 1945)
Chronological List
(of some Member Countries)
Member
Effective Date of Membership
Belgium
December 27, 1945
Italy
March 27, 1947
Canada
December 27, 1945
China
December 27, 1945
Egypt
December 27, 1945
Philippines
December 27, 1945
France
December 27, 1945
Greece
December 27, 1945
Turkey
March 11, 1947
Iceland
December 27, 1945
Pakistan
July 11, 1950

13. QUOTAS:
The fund has general account based on quotas allocated to its
members.
FUND BORROWING:
It was in force from October 1962 to December 1998 . At that
time its total borrowing was SDR 17 billion.
Resources

14.  Since 1988, Pakistan has not enjoyed smooth relations
with the IMF Because of the latter's dissatisfaction with
the economic performance of Pakistan.
 Pakistan signed several agreements with the IMF, but
due to a variety of factors most of them remained
incomplete.
 The IMF, has played a crucial role in the macro
economic stability of Pakistan since 1988
PAKISTAN AND IMF

15.  IMF Executive Board Completes First and Second Reviews
Under Extended Fund Facility Arrangement for Greece and
Approves €3.24 Billion Disbursement. (January 16, 2013)
http://www.imf.org/external/np/sec/pr/2013/pr1313.htm
 The IMF’s Executive Board has approved the renewal of
Mexico’s Flexible Credit Line (FCL) for $73 billion. In its
latest assessment of the Mexican economy, the IMF said
growth has remained resilient, noting the country’s strong
fundamentals and sound policy frameworks and management.
(December 11, 2012)
http://www.imf.org/external/pubs/ft/survey/so/2012/car121112a.h
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