Protecting IMF Resources - Safeguards Assessments of Central Banks

When the IMF lends to a country, it seeks assurances that the country’s central bank is able to manage the funds it receives and provide reliable information. IMF safeguards assessments are a due diligence exercise to fulfill this objective.

The IMF’s Articles of Agreement require “adequate safeguards” for the use of its resources. This is to ensure that loans to member countries are repaid as they fall due, making those funds available to other members in need. Safeguards include limits on how much can be borrowed, conditions on the loans, measures to deal with misreporting and arrears, and safeguards assessments of central banks.