Question What opportunities might current International Mone

Question: What opportunities might current International Monetary Fund (IMF) lending policies to developing nations create for international businesses?

Solution

The IMF has announced creation of a new flexible credit line for countries with very strong fundamentals, policies and track record. These loans are like an insurance policy where can be fully disbersed when the need arises instead of being conditioned on compliance with policy targets. The institutional committee also announced that it would double non-concessional loans and enhance its stand-by facility, simplifying loan facilities.

These reforms represent a significant change the Fund can help member countries, especially needed at time of global crisis.They have introduced more flexibility in lending in order to respond effectively to the needs of member countries.These reforms would to help nations to weather the crisis and return to sustainable growth. Large-scale financing from the IMF can cushion the economic and social costs of global shocks and even alert full-blown crisis if assistance is equested early on.

*****