The Financial Transactions Plan of the
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
is the mechanism
through which the Fund finances its lending and repayment operations, to its members, in the General
Resources Account. It was formerly called the operational budget.
The members of the Fund can take loans from the IMF with limits corresponding to their
quota
Quota may refer to:
Economics
* Import quota, a trade restriction on the quantity of goods imported into a country
* Market Sharing Quota, an economic system used in Canadian agriculture
* Milk quota, a quota on milk production in Europe
* Indi ...
. IMF lends to its members in both foreign exchange and SDRs. Credit extended in foreign exchange is financed from the quota resources made available to the IMF by members. The creditor benefits as their position increases. When extending credit in SDRs, the IMF transfers reserve assets directly to borrowing members by drawing on the IMF's own holdings of SDRs in the General Resources Account.
References
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See also
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Reserve Tranche Position
A country's Reserve Tranche Position (RTP) is the difference between the International Monetary Fund's (IMF) holdings of that country's currency and the country's IMF-designated quota.
Background
The primary means of financing the International ...
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Enhanced structural adjustment facility The Enhanced Structural Adjustment Facility (ESAF) was a program of financial assistance given to poor countries from December 1987 through 1999 through the International Monetary Fund. It replaced the Structural Adjustment Facility (SAF) and was i ...
International Monetary Fund