IMFInternational Monetary Fund

Establishment: it was the outcome of Wood Agreement signed by 44 major countries of the world in July 1944 in USA.  Organization: It is an autonomous body and is affiliated to UNO. The management of Fund is under control of two bodies: a) Board of governor, b) Board of Executive directors

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IMFInternational Monetary Fund



a) Board of governor: it formulates the general policies of the Fund b) Board of Executive directors: it is responsible for the day to day activities of the Fund. Membership: All those counties which agree to subscribe to Funds Article of Agreement are eligible to Funds Membership. The membership of Fund has risen from 44 nations to 183 now.

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IMFInternational Monetary Fund



Quotas: Each member has to contribute a quota to fund. The size of the quota depends upon the national income and share in international trade of that country. The quota is made up of 75 % in the country's currency and 25 % in gold.

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IMFInternational Monetary Fund

 1) 2) 3)

4)

::Functions of IMF:: Maintaining exchange stability among the members countries Borrowing: The credit facility has been raised up to 45 % of ones quota over a three years period. Correcting Balance of Payment (A balance of payments (BOP) sheet is an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services ) Interest charges: It charges interest on the credit provided to member countries.
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IMFInternational Monetary Fund



::Functions of IMF:: 5) Technical Assistance: it helps the members by providing the services of specialist and experts in concerned fields. 6)Compensatory Finance Scheme: if a member is facing difficulty in receipt of export credit, the IMF can give loan to member with few conditions. 7) The extended Fund Facility: For the assistance of correcting the balance of payments of the member countries, introduced in 1974 by IMF 8) The Supplementary Financing Facility: This scheme was introduced in 1979 in order to give long term loans to less developed counties
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World Bank ( IBRD )

IBRD or International Bank for Reconstruction & Development or World Bank was established in 1947. ::: Objectives Of IBRD::: 1) The original objective was to make loans to develop the war shattered economies of Europe in the Second World War. 2) To promote investment by means of guarantee and participation in loans and other investments made by private investors. 3) To provide loans to big projects 4) To help the poor countries by providing them loans and information assistance.


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World Bank ( IBRD )

 1)

2) 3)

::Sources of IBRD:: Quotas: The membership of the world is the same as that of IMF. Members make contribution in relation to their IMF Quota. Bonds: The World Bank also sells Bonds in the capital markets to raise funds. Income: A very small proportion of the IBRD funds come from the interest on loans advanced by it.

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Asian Development Bank

It was established on December 4, 1966 with an authorized capital of 58 billion dollars.  The purpose of its formation was to lend funds, promote investment and provide technical assistant to the countries mainly in Asian region. :::Features:::: 1) It is an Asian Bank 2) Its membership is now extends beyond the Asian countries. It has 16 non.regional donor nations led by USA. The total number of members are now 55

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Asian Development Bank



This was emerged as a result of the Economic Commission For Asia and Far East held in Manila in December 1963. It was decided that the capital formation in the developing countries is not possible through domestic savings only and capital should be made available to the low income countries by establishing a bank.
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Asian Development Bank

 1) 2) 3) 4)

5)

:::: Functions::::: Provide loans to low income countries. Promote investments in private as well as in public sector. Help the member counties in foreign trade. It provides technical assistance for preparation, financing and execution of development projects. It also helps the UNO in various projects ( But in rare cases )

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Asian Development Bank

:::: Organization:::: The bank has a Board of Governors, Board of Directors, a President and a vice President.

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Islamic Development Bank

 

It was set up at Jaddah in 1975, it has 28 founder countries. Now it has 42 countries. The authorized capital of the IDB is 2000 Islamic Dinars and the subscribed capital is 1820 million dinars.

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Islamic Development Bank

::::Objectives :::: 1) Balanced Development of member countries. 2) Development through mutual financial and economical co operation among the member countries. 3) To promote and strengthen co operation among members. 4) To mobilize resources inside and outside the member states. 5) To promote domestic savings. 6) To promote foreign trade 7) To provide transfer of technology and skills

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Islamic Development Bank

:::: Functions::: 1) To participate in productive projects and enterprises. 2) To invest in social and economical infrastructure projects. 3) To advance loans to the public and private sectors for productive projects, enterprises, programs. 4) Promoting foreign trade of capital goods . 5) Transfer of heavy machinery for various projects, its related skills, establishing various scientific firms etc 6) Providing training facilities for development projects in member countries. 7) To undertaken research in order to enable the economic, financial, and banking activities to conform to the law of Shariah

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Paris Club
 

The developing/poor countries all over the world are facing serious problems about the repayment of their loans. This is just like a forum where official creditors meet together to solve the problems faced by the indebted countries. The world's biggest economies, which provides financial services such as debt restructuring, debt relief, and debt cancellation to indebted countries and their creditors. So such biggest economies play a vital role in cancellation and restructuring of loan etc etc Debtors are often recommended by the International Monetary Fund ( IMF ) after alternative solutions have failed.

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Paris Club


Presently there are 19 members of the Paris Club. The detail is given on the next slide

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Paris Club
Members Permanents
          

Australia Austria Belgium Canada Denmark Finland France Germany Ireland Italy Japan

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Paris Club
       

Netherlands Norway Russia Spain Sweden Switzerland United Kingdom United States
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Paris Club
             

Associated Abu Dhabi Argentina Brazil Korea Israel Kuwait Mexico Morocco New Zealand Portugal South Africa Trinidad and Tobago Turkey

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Paris Club
        

Observers International Monetary Fund (IMF) World Bank United Nations Conference on Trade and Development (UNCTAD) European Commission African Development Bank Asian Development Bank European Bank for Reconstruction and Development (EBRD) Inter-American Development Bank (IADB)

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International Finance Corporation



  

Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It promotes sustainable private sector development primarily by: Financing private sector projects and companies located in the developing world. Helping private companies in the developing world mobilize financing in international financial markets. Providing advice and technical assistance to businesses and governments.
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International Finance Corporation



The International Finance Corporation (IFC) promotes sustainable private sector investment in developing countries. IFC is a member of the World Bank Group and is headquartered in Washington, DC. It shares the primary objective of all World Bank Group institutions: to improve the quality of the lives of people in its developing member countries.
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International Finance Corporation



IFC has 182 member countries , which collectively determine its policies and approve investments. To join IFC, a country must first be a member of the International Bank for Reconstruction and Development (IBRD). IFC's corporate powers are vested in its Board of Governors, to which member countries appoint representatives.
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Its main function is to provide finance for industrial projects to the private enterprises in developing countries. The loan is repayable in a period of 5 to 15 years.

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