Accurate and up-to-date information on the work of the IMF has been in high demand throughout the years. Our factsheets are a popular information source, describing in plain English the IMF’s mandate and operations, as well as its role on issues of relevance in international economics and finance.
The International Monetary Fund, or IMF, works to achieve sustainable growth and prosperity for all of its 191 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being.
The IMF provides technical assistance and training – known as capacity development – as one of its core functions. Capacity development accounts for around a third of the IMF’s annual spending. It is available to all members upon their request and is tailored to a country’s specific needs. Capacity development can help countries to improve tax collection and bolster public finances. It can help countries to modernize their monetary and exchange rate policies, develop legal systems, or strengthen governance. Capacity development also can help countries collect and disseminate data to inform decision-making.
The money the IMF loans to its members on its best – or non-concessional – terms comes from member countries, mainly through their payment of quotas. Multilateral and bilateral arrangements can supplement quota funds and plays a critical role in the IMF’s support for member countries in times of crisis. The IMF’s current total resources of about SDR 982 billion translate into a capacity for lending of about SDR 695 billion (around US$932 billion), as at mid-December 2023.
Supporting sound financial systems Weak financial institutions, inadequate regulation and supervision, and lack of transparency have been at the heart of global financial crises. These have highlighted the importance of systemic risk monitoring and management, which is why the IMF has stepped up efforts to help countries support sound financial systems.
How the IMF monitors the global economy A core responsibility of the IMF is overseeing the international monetary system and monitoring members’ economic and financial policies, an activity known as surveillance. Through surveillance at the global, regional, and country levels, the IMF identifies potential risks to stability and recommends appropriate policy adjustments to sustain economic growth and promote financial and economic stability.
What kind of financial assistance does the IMF offer? Unlike development banks, the IMF does not lend for specific projects. Instead, the IMF provides financial support to countries hit by crises to create breathing room as they implement policies that restore economic stability and growth. It also provides precautionary financing to help prevent crises. IMF lending is continuously refined to meet countries’ changing needs.
How does the IMF support low-income countries? The IMF assists low-income countries (LICs) with financial and other support. The IMF’s surveillance program provides continuous monitoring of member countries’ economic and financial policies. Discussions with country authorities focus on the impact of their economic policies on stability and growth and the desirable policy measures. Capacity building typically focuses on how LICs can boost domestic revenues, manage public finances and monetary policy, regulate their financial system, and develop statistical systems. Capacity building helps IMF member countries to design and implement sound policies and to advance toward the United Nations’ Sustainable Development Goals.
