Abstract

The IMF provides support to its member countries through a variety of instruments, depending on their needs. It has a number of different lending facilities (Table 4.1) as well as mechanisms for providing policy support without financing, and also provides, at the request of members, technical assistance and training that are consistent with the purposes of the Fund. The IMF’s Executive Board regularly reviews these instruments to ensure that they continue to meet the evolving needs of member countries. Consideration and approval of members’ requests for financial assistance and program support are core Board responsibilities, alongside surveillance. Under its lending facilities, the IMF makes temporary financing available to give member countries time to adjust their policies so as to overcome short-term balance of payments problems, such as insufficient foreign exchange to purchase needed imports or make payments on external obligations; stabilize their economies; and avoid similar problems in the future. IMF financing is provided in support of economic reform programs developed by member countries themselves in collaboration with the IMF, and is expected to have a catalytic effect, enabling a country to restore confidence in its policies and attract additional financing from other sources. The Board regularly evaluates members’ performance under their programs, and, in most cases, funds are disbursed as program targets are met.