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Questions about International Monetary Fund

Short answers, pulled from the story.

What is the International Monetary Fund and what does it do?

The International Monetary Fund is an international financial institution and a specialized agency of the United Nations, headquartered in Washington, D.C., with 191 member countries. It acts as a lender of last resort to members facing actual or potential balance-of-payments crises, and provides technical assistance and economic surveillance of its members' economies.

When and where was the International Monetary Fund established?

The International Monetary Fund was established in July 1944 at the Bretton Woods Conference, held at the Mount Washington Hotel in Bretton Woods, New Hampshire. It formally came into existence on the 27th of December 1945, when the first 29 countries ratified its Articles of Agreement.

Who founded the International Monetary Fund?

The International Monetary Fund was based on the ideas of American delegate Harry Dexter White and British economist John Maynard Keynes. White wanted the Fund to work like a bank that ensured repayment, while Keynes envisioned a cooperative fund members could draw on through crises, and most of White's plan was adopted at Bretton Woods.

How does voting power work at the International Monetary Fund?

Voting power at the International Monetary Fund is based on a quota system, where each member's contribution reflects its size in the global economy and sets its influence. Each member gets basic votes equal to 5.502% of the total, plus one vote per special drawing right of 100,000 in its quota, and changes to voting shares require an 85% super-majority.

Why is the International Monetary Fund criticized for its loan conditions?

The International Monetary Fund's loan conditions, known as conditionality and structural adjustment, have been criticized for imposing austerity measures that can hinder economic recovery and harm vulnerable populations. Studies using the Gini coefficient found that countries with IMF policies face increased income inequality, and a 2009 study linked strict conditions to a 16.6% rise in tuberculosis deaths across 21 countries that received loans.

Who is the managing director of the International Monetary Fund?

The current managing director and chairperson of the International Monetary Fund is Bulgarian economist Kristalina Georgieva, who has held the position since the 1st of October 2019. The managing director is the most powerful position at the IMF and serves as chairman of the executive board.

What was the International Monetary Fund's role in the Greek bailout?

The International Monetary Fund participated in the first Greek bailout of 110 billion euros in May 2010, taking part in a 3:11 proportion, with Greece agreeing to austerity to cut its deficit from 11% in 2009 to well below 3% in 2014. A second package of more than 100 billion euros followed from October 2011, managed by the Troika and approved on the 15th of March 2012 for 23.8 billion XDR, with private bondholders taking a haircut above 50%.