Understanding IMF Programmes
The Articles of Agreement of the International Monetary Fund (IMF) propose that one of the fundamental objectives of the IMF should be to make the pooled resources of its members temporarily available to other member states in order to address any balance‐of‐payments disequilibria. To ensure the loans that they provide to members are repaid, the IMF also asks borrowers to enter into a programme. These programs usually specify performance criteria for key macroeconomic variables, such as ceilings on the fiscal deficit, the central bank’s lending to government, as well as a floor on net international reserves.
