THE IMF

AT A

GLANCE

WHY THE IMF WAS CREATED AND HOW IT WORKS

The IMF, also known as the Fund, was conceived at a UN conference in Bretton Woods,
New Hampshire, United States, in July 1944. The 44 countries at that conference
sought to build a framework for economic cooperation to avoid a repetition of the
competitive devaluations that had contributed to the Great Depression of the 1930s.
The IMF's responsibilities: The IMF's primary purpose is to ensure the stability of the
international monetary systemthe system of exchange rates and international
payments that enables countries (and their citizens) to transact with each other. The
Fund's mandate was updated in 2012 to include all macroeconomic and financial sector
issues that bear on global stability.

FAST FACTS

Membership: 189 countries

Headquarters: Washington, D.C.

Executive Board: 24 Directors each representing a single country or a group of

countries

Staff: Approximately 2,600 from 147 countries

Total quotas: US$327 billion (as of 3/13/15)

Additional pledged or committed resources: US$ 885 billion

Committed amounts under current lending arrangements (as of 3/13/15): US$163

billion, of which US$137 billion have not been drawn (see table).

Biggest borrowers (amounts outstanding as of 3/13/15): Portugal, Greece, Ireland,

Ukraine

Biggest precautionary loans (amount agreed as of 3/13/15): Mexico, Poland,

Colombia, Morocco

Surveillance consultations: 122 consultations in 2013 and 129 in 2014

Technical assistance: 274 person years in FY2013 and 285 in FY2014

Original aims:
1. promote international monetary cooperation;
2. facilitate the expansion and balanced growth of international trade;
3. promote exchange stability;
4. assist in the establishment of a multilateral system of payments; and
5. make resources available (with adequate safeguards) to members experiencing

balance of payments difficulties.

OUR WORK
The IMFs fundamental mission is to ensure the stability of the international monetary
system. It does so in three ways: keeping track of the global economy and the
economies of member countries; lending to countries with balance of payments
difficulties; and giving practical help to members.
SURVEILLANCE

The IMF oversees the international monetary system and monitors the economic and
financial policies of its 189 member countries. As part of this process, which takes place
both at the global level and in individual countries, the IMF highlights possible risks to
stability and advises on needed policy adjustments.
LENDING

A core responsibility of the IMF is to provide loans to member countries experiencing

actual or potential balance of payments problems. This financial assistance enables
countries to rebuild their international reserves, stabilize their currencies, continue
paying for imports, and restore conditions for strong economic growth, while undertaking

policies to correct underlying problems. Unlike development banks, the IMF does not
lend for specific projects.
TECHNICAL ASSISTANCE

The IMF helps its member countries design economic policies and manage their
financial affairs more effectively by strengthening their human and institutional capacity
through technical assistance and training. The IMF aims to exploit synergies between
technical assistance and trainingwhich it calls capacity developmentto maximize
their effectiveness.

ORGANIZATION & FINANCES

The IMF has a management team and 17 departments that carry out its country, policy,
analytical, and technical work. One department is charged with managing the IMFs
resources. This section also explains where the IMF gets its resources and how they are
used.
MANAGEMENT

The IMF has a Managing Director, who is head of the staff and Chairperson of the
Executive Board. The Managing Director is appointed by the Executive Board for a
renewable term of five years and is assisted by a First Deputy Managing Director and
three Deputy Managing Directors.
STAFF

The IMFs employees come from all over the world; they are responsible to the IMF and
not to the authorities of the countries of which they are citizens. The IMF staff is
organized mainly into area; functional; and information, liaison, and support
responsibilities
IMF RESOURCES

Most resources for IMF loans are provided by member countries, primarily through their
payment of quotas.

QUOTAS

Quota subscriptions are a central component of the IMFs financial resources. Each
member country of the IMF is assigned a quota, based broadly on its relative position in
the world economy.
SPECIAL DRAWING RIGHTS (SDR)

The SDR is an international reserve asset, created by the IMF in 1969 to supplement its
member countries official reserves.
GOLD

Gold remains an important asset in the reserve holdings of several countries, and the
IMF is still one of the worlds largest official holders of gold.
BORROWING ARRANGEMENTS

While quota subscriptions of member countries are the IMF's main source of financing,
the Fund can supplement its quota resources through borrowing if it believes that they
might fall short of members' needs.

GOVERNANCE
GOVERNANCE STRUCTURE

The IMF has evolved along with the global economy throughout its 70-year history,
allowing the organization to retain a central role within the international financial
architecture.
COUNTRY REPRESENTATION

Unlike the General Assembly of the United Nations, where each country has one vote,
decision making at the IMF was designed to reflect the relative positions of its member
countries in the global economy. The IMF continues to undertake reforms to ensure that
its governance structure adequately reflects fundamental changes taking place in the
world economy.

ACCOUNTABILITY

Created in 1945, the IMF is governed by and accountable to the 189 countries that
make up its near-global membership.
CORPORATE RESPONSIBILITY

The Fund actively promotes good governance within its own organization.

HISTORY
The IMF has played a part in shaping the global economy since the end of World War II.
COOPERATION AND RECONSTRUCTION (194471)

As the Second World War ends, the job of rebuilding national economies begins. The
IMF is charged with overseeing the international monetary system to ensure exchange
rate stability and encouraging members to eliminate exchange restrictions that hinder
trade.
THE END OF THE BRETTON WOODS SYSTEM (197281)

After the system of fixed exchange rates collapses in 1971, countries are free to choose
their exchange arrangement. Oil shocks occur in 197374 and 1979, and the IMF steps
in to help countries deal with the consequences.
DEBT AND PAINFUL REFORMS (198289)

The oil shocks lead to an international debt crisis, and the IMF assists in coordinating
the global response.
SOCIETAL CHANGE FOR EASTERN EUROPE AND ASIAN UPHEAVAL (19902004)

The IMF plays a central role in helping the countries of the former Soviet bloc transition
from central planning to market-driven economies.

GLOBALIZATION AND THE CRISIS (2005 - PRESENT)

The implications of the continued rise of capital flows for economic policy and the
stability of the international financial system are still not entirely clear. The current credit
crisis and the food and oil price shock are clear signs that new challenges for the IMF
are waiting just around the corner.