1. International Monetary Fund
Result of Bretton woods conference of nations held in 1944 to discuss the major international economic problems.
Established on Dec 27, 1945 with 29 countries.
Began financial operations on March 1 ,1947.
Membership of IMF is a prerequisite for membership in the world bank (IBRD)
185 member countries.
Head Quarters : Washington, District of Columbia United States

2. Objectives of IMF To promote international monetary cooperation.
To facilitate the expansion and balanced growth of International trade.
To promote exchange stability.
To assist in the establishment of a multilateral system of payments.
To give confidence to members by making the resources available to them under adequate safeguards.

3. Monitors economic and financial developments and policies, in member countries.
Lends to member countries with balance of payments problems.
Provides the governments and central banks of its member countries with technical assistance and training in its areas of expertise.

4. Functions of IMF
The fund is regarded as, “the guardian of good conduct” in the area of Balance of payments.
aims at reducing tariffs and trade restrictions.
provides technical advice to its members reg. Monetary and Fiscal policies.
Lending institution of foreign currencies.
Machinery for International liquidity.

5. Organisation Structure
Board of Governors- meets once a year.
Executive Board- 24 Executive Directors
A Managing Director- Chairman.
International Monetary and Financial committee ( Interim committee until sep’99)
Development committee- jointly IMF &WB

6. Resources Quotas and Subscriptions.
Quotas determine the voting power of member countries.
SDR ( Special Drawing Rights)
International reserve asset created by the Fund, taking into account the global need for supplementing existing reserve assets.

7. Borrowings It has two sets of Standing arrangements.
General arrangement to borrow (GAB)
Set up in 1962, which has 11 participant
Ten Industrialised countries and Switzerland.
New Arrangements to Borrow (NAB)
Introduced in 1997, 25 Participating countries and Institutions.

8. The Process of IMF lending
Letter of Indent to the Executive board.
All arrangements must be approved by Executive board.
Concessional lending
Poverty Reduction and Growth Facility (PFGF)
Non-Concessional lending
Stand-By Arrangements (SBA)
The Extended Fund Facility ( EFF)
The Supplemental Reserve Facility (SRF),
The Contingent Credit lines (CCL)
Compensatory Financing Facility (CFF)

9. Poverty Reduction and Growth Facility (PRGF)
For low income countries.
Previously, Enhanced Structural Adjustment Facility (ESAF) until 1999
Country has to submit Poverty Reduction Strategy Paper (PRSP)
Interest Rate for PRGF 0.5%
Repaid 5.5 yrs- 10 years

10. Stand-By Arrangement (SBA)
Short-term balance of payment problems.
Length of period 12 – 18 months.
Repayment – 2yrs 3months – 4 yrs.
Surcharges apply to high levels of access

11. Extended Fund Facility (EFF)
Established in 1974
Arrangement for 3 years
Repayment normally 4yrs 6months – 7 years.
Surcharges apply to high levels of access.

12. Supplemental Reserve Facility (SRF)
Very short term financing .
Repayment 1 year – 1.5 years
At request , extended by up to 1 year.
Surcharge

13. Contingent credit Lines (CCL)
To help members prevent crises.
Established in 1999
Surcharge with Interest rate.

14. Compensatory Financing Facility (CFF)
Established in 1960
No Surcharge
Assist countries experiencing either a sudden shortfall in export earnings or an increase in the cost cereal imports.

15. World Bank
IBRD ( International Bank for Reconstruction and Development)
1946
Head quarters : Washington, US
185 Member Countries
Group: IDA,IFC, MIGA and ICSID

16. Principles Client centred Working in partnership,
Accountable for quality results,
Dedicated to financial integrity and cost-effectiveness
Inspired and innovative.

17. Purpose of World Bank.
To assist in the reconstruction and development of the territories of the members.
To promote private foreign investments by means of guarantee…
To promote the long-range balanced growth of International trade and the maintenance of equilibrium in the balance of payments.

18. Lending Programmes
Infrastructure is the major focus of World bank lending.
Roads and railways, Telecommunications, and ports and power facilities.
Energy development.
Structural adjustment lending –SAL – 1980s
Special Action programme Global recession
B-Loan and export credit.

19. International Development Association (IDA)
Established in 1960
Only for Poor countries
Interest free loans.
Borrowers pay <1% fee
Repayment 35 to 40 years
Grace period 10 years.
IDA credit Criteria: Poverty test, Performance test, Project test.

20. International Finance Corporation
Established in 1956
Promotes Private sector investment, both foreign and domestic, in developing member countries.
IFC endeavours to assist economic development of developing countries by promoting private enterprises.

21. MIGA Multilateral Investment Guarantee Agency
To promote FDI by offering political risk insurance ( Guarantees) to investors and lenders

22. ICSID International Centre for Settlement of Investment Disputes
Provides facilities for the settlement – by conciliation or arbitration- of investment disputes between foreign investors and their host countries.

23. Asian Development Bank
Set up in December 1966
Headquarters : Manila, Phillipines
Total members : 67
Regional members : 48
Non- regional members: 19.
Motto : to reduce poverty

24. Focus ADB Promotion of poor, sustainable economic growth.
Social development
Protection of the environment
Private sector development
Regional cooperation.

25. UNCTAD
Aims at promoting trade and economic development of developing countries.
Created in 1964
Meets every four years
It functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building.
It undertakes research, policy analysis and data collection for the debates of government representatives and experts.
It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition.

26. UNIDO
United Nations Industrial Development Organisation