Operations

IMF member countries may utilize the Fund's resources if they find themselves in balance of payments difficulties. Drawings normally will be in the context of policy measures — an adjustment program — intended to correct the balance of payments position and are linked to progress under that program. Technically, use of the Fund's resources takes the form of a member using its own currency to purchase other currencies (or SDRs} held by the IMF. Drawings on the Fund's resources that do not exceed 25 percent of the member's quota normally require that the member make a reasonable effort to overcome its balance of payments problem. Purchases beyond that amount — i.e. drawings in the so-called upper credit tranches — usually are made in the context of an adjustment program. Repayments to the IMF are normally to be made within 3 to 5 years, but under the extended facility the country may have up to 10 years to repay the financing provided by the Fund.

General understanding:

1. What countries was IMF composed of on December

1991?

2. Who are the governors of IMF's Board of Governors?

3. Who presides over Executive Board?

4. How is the managing director elected?

5. What importance has «quota» for the members of IMF?

6. What operations could be carried out through IMF?

How have the total subscriptions changed over time?

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