International Monetary Fund

About the IMF

The International Monetary Fund (IMF) is an organization of 189 countries, working to foster
global monetary cooperation, secure financial stability, facilitate international trade, promote high
employment and sustainable economic growth, and reduce poverty around the world. Created in
1945, the IMF is governed by and accountable to the 189 countries that make up its near-global
membership.

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 2,700 from 148 countries
Total quotas: US$668 billion (as of 9/13/16)
Additional pledged or committed resources: US$ 668 billion
Committed amounts under current lending arrangements (as of 9/8/16): US$159 billion, of which
US$144 billion have not been drawn (see table).
Biggest borrowers (amounts outstanding as of 8/31/16): Portugal, Greece, Ukraine, Pakistan
Biggest precautionary loans (amount agreed as of 9/8/16): Mexico, Poland, Colombia, Morocco
Surveillance consultations: 130 consultations in 2013 and 132 in 2014, and 124 in 2015
Capacity development: 274 person years in FY2013, 285 in FY2014, and 288 in FY2015
Original aims:
o promote international monetary cooperation;
o facilitate the expansion and balanced growth of international trade;
o promote exchange stability;
o assist in the establishment of a multilateral system of payments; and
o make resources available (with adequate safeguards) to members experiencing balance of
payments difficulties.
IMFs 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.
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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.

IMFs 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.

1. 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.

2. 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.

3. Capacity Development
IMF capacity developmenttechnical assistance and traininghelps member countries design and
implement economic policies that foster stability and growth by strengthening their institutional
capacity and skills. The IMF seeks to build on synergies between technical assistance and training to
maximize their effectiveness.

IMFs Organization and 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.

1. 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.

2. 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.

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

4. 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.

5. Special Drawing Rights (SDR)

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

6. 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.

7. 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.

IMFs 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.

Additional Information:
AT A GLANCE: Philippines relations with the IMF
Philippines joined the IMF on December 27, 1945. Its quota is SDR 879.90 million. The Philippines
has no outstanding purchases and loan