Jayeed Naseeree ZR 01

Sayra Nusrat SN 02
Souvik Aswad ZR 04
Mahibul Karim Khan ZR 06
Nazmus Saadat ZR 115
Ruhan Arman Serniabat ZR 116
Tanzilul Ahsan (ZR-42, 18
th
)
Wasifa Rahnuma Islam (RQ-88, 18
th
)
Team Gol d St andar d
The Great Depression
Political Consequence of
World War II
Barriers To
Foreign
Trade
Devaluation
of National
Currencies
Decline in
World
Trade
Decimation
of
European
Economies
Decoloniza
tion
Fund
needed for
poorer
countries
Establishment of IMF
What is IMF?

Historical Progress of the IMF

Governance & Organization of IMF

IMF Policies & Activities

IMF in Bangladesh

We will cover.
What is the
IMF?
What is the IMF?
The IMF is an international organization of 185 member countries.

It was established-

To promote international monetary cooperation, exchange stability, and
orderly exchange arrangements;

To foster economic growth and high levels of employment; and

To provide temporary financial assistance to countries to help ease
balance of payments adjustments.
Main Activities:
S u r v e i l l a n c e . | L e n d i n g | T e c h n i c a l
a s s i s t a n c e

Historical
PROGRESS
1971 Par values and convertibility of the dollartwo main features of
Bretton Woods systemcease to exist.
1944 IMF and World Bank Articles of Agreements are formulated at Bretton
Woods, New Hampshire, USA.
1947 IMF begins operations.
1952 Germany and Japan become members
2004 IMF establishes the Trade Integration Mechanism (TIM).
2000 IMF begins regular publication on its website of
information on the sources of financing for IMF lending.
1990 Executive Board approves temporary expansion of
IMF facilities to support countries affected by Middle East
crisis.
1986 IMF establishes Structural Adjustment Facility (SAF) .
Governance &
Organization
How IMF runs?
The IMF is accountable to the governments of its member countries.
Its Board of Governors has one Governor and one Alternate
Governor from each member country.

Twenty-four Governors sit on the International Monetary and
Financial Committee (IMFC) and usually meet twice a year.

Daily activities of the IMF are supervised by its 24-member
Executive Board, which represents the entire membership. This
work is guided by the IMFC and is supported by the IMF staff.
Qualification for Membership
The IMFs executive board considers the application to become a
member of a country. The executive board then submits a report to the
board of governors of the IMF with recommendations in the form of a
membership resolution.

These recommendations cover the amount of quota in the IMF, the form
of payment of the subscription, customary terms and conditions of
membership.

After a request for membership has been accepted, the applicant state
requires taking legal steps under its own law to enable it to sign the
IMFs Articles of Agreement, and to fulfill the obligations of IMF
membership.

Similarly, any existing member country of the IMF can withdraw from
the IMF.
IMF Membership Quota
A members quota in the IMF determines its amount of subscription,
its voting weight, its access to IMF financing, and its allocation of
SDRs.

A member state cannot increase its quota independently. An
increase in quota needs to be approved by the Executive Board of
IMF. It is also linked to many formulas that include many variables
such as the size of a country in the world economy.

In September 2005, the IMF member countries agreed to an
increase in the quota of four countries including China

Because of the financial crisis, the control has tilted from heavily
indebted mature economies of the United States and United
Kingdom in favor of the fast-growing and cash-rich economies of
India, China, Brazil & Russia.
Hierarchy in Quota
IMF Activities
Responsibilities of IMF

International monetary system is the system of exchange rates and
international payments that enable countries and their citizens to
transact with one another

IMFs responsibility is to ensure the stability of the international
monetary system

This system leads to the promotion of sustainable economic growth, an
increase in the living standards, and in reduction of poverty.

In Post-Recession period, it is now updating its mandate to cover all
macroeconomic and financial sector issues that have an impact on
global stability.
.
Surveillance
Aim is to
Encourage policies that foster economic stability
Reduce vulnerability to economic and financial crisis
Raise living standard

Surveillance Reports and Recommendations are published in
its various own Publications namely World Economic Outlook,
Global Financial Stability Report, Fiscal Monitor.


Surveillance is a collaborative, candid, and even-
handed process between the Fund and its members.
Lending
IMF lending enables countries to rebuild their
international reserves; stabilize their currencies; continue
paying for imports; and restore conditions for strong
economic growth.

IMF does not lend for specific projects.

IMF has strengthened its lending capacity and approved
a major overhaul of mechanisms for providing financial
support in April, 2009. Further reforms were adopted in
August, 2010.

Lending
In post recession period, IMF now provides flexible crisis
prevention tools to a broad range of members with
sound fundamentals, policies and institutional policy
frameworks.

For low-income countries, the IMF doubled loan access
limits and is also boosting its lending to the worlds
poorer countries.
Technical assistance
It supports the development of the productive resources
of member countries by helping them to effectively
manage their economic policy and financial affairs.

About 90 percent of IMF technical assistance goes to low
and lower-middle income countries, particularly in sub-
Saharan Africa and Asia.

It offers technical assistance in many area namely tax
policy and administration, expenditure management,
monetary and exchange rate policies, banking and
financial system supervision and regulation, statistics and
legislative frameworks.

SDR (Special Drawing Rights)
SDR is an international reserve asset that is issued by
the IMF. It can supplement the official reserves of
member countries.

Member countries can voluntarily exchange SDRs for
currencies amongst themselves.

Two allocations in August and September 2009
increased the outstanding stock of SDRs almost ten-fold
to reach a total of SDR 204 billion (US $328 billion)
So...Where does the Money
comes for IMF?
The IMFs resources are provided by its member
countries primarily through payment of quotas, which
broadly reflect the economic size of a country..

Historically, the annual expenses of the IMF were met
mainly by interest receipts on outstanding loans

But recently the member agreed to adopt a new income
model based on a range of revenue sources that are
better suited to the diverse activities of the IMF

In 2009 at G-20 Summit, world leaders agreed to support
the tripling of the IMFs lending resources from about US
$250 billion to US $750 billion.
IMF in
Bangladesh
Bangladesh Joined on August 17, 1972; accepted the
obligations under Article VIII, Sections 2, 3, and 4 on
April 11, 1994.

Quota: SDR 533.30 million

Outstanding loans: ECF (Extended Credit Facility)
Arrangements SDR 526 million (as of June 2014).

The last Article IV Executive Board Consultation was on
November 27, 2013
IMF in Bangladesh

In Bangladesh, IMF loans are intended to address balance-of-
payments problems. IMF analyzes the macro-economic scenario
and asks for reforms before granting Bangladesh a larger loan.

Earlier IMF has provided special loans to Bangladesh at a
concessional interest rate under its Poverty Reduction and Growth
Facility (PRGF).

However, IMF does not make long-term loans for project financing
like what the multilateral development banks (such as the World
Bank and the ADB) offer to Bangladesh.

In a recent visit in July,2014, IMF Deputy Managing Director Naoyuki
Shinohara expressed his satisfaction about the execution of IMF
projects in Bangladesh and showed interest in relaxing conditions in
providing loan to Bangladesh


Just a Hint of IMFs Detailed Activities
in Bangladesh
The Rest can be accessed at this address:
http://www.imf.org/external/pubs/ft/scr/2014/cr14149.pdf

Bangladesh: Financial Position in the
Fund as of July 31, 2014
Schedule For IMFs ECF Loan Payment
If you are interested...
Please Visit the following Web Addresses:
http://www.imf.org/external/country/bgd/

http://www.imf.org/external/country/BGD/rr/index.htm

http://www.imf.org/external/country/BGD/rr/2014/0808
14.pdf

https://www.imf.org/external/np/fin/tad/exfin2.aspx?me
mberKey1=55&date1key=2014-09-07





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