The role of the IMF in helping poor and debt-troubled countries Case Study

The role of the IMF in helping unfortunate and debt-troubled countries - Case Study ExampleCertain occurrences such as post-war rehabilitation or various crises could assume to a situation where a country would have minimal resources to support the running of its government. In prepare to replenish their reserves, the IMF lends money with certain conditions according to standards it has predetermined for compliance. In order for the countries to pay their international obligations as well as finance their local subsistence, the IMF would lend them the money.The loan is granted provided that they meet conditions set including saki and imposition of fiscal policies that moldiness be enforced by the borrowing state. These prerequisites result to high-conditionality lending that must be adhered to before they can fully enjoy the loan. The IMF is essentially a bank, and, just as the commonalty knowledge about banking institutions suggest, it is also for profit. First off, a member co untry may avail of fiscal assistance if there is a balance in its international payment that it cannot sitisfy. It then requests an arrangement by a lending instrument where the IMF (2014) stipulate specific economic policies and measures a country has agreed to apply to resolve its balance of payments problem through a Letter of Intent (n.p.). This is then approved aft(prenominal) presentation to the Executive Board and thereafter the funds are transferred in staggered basis according to their impersonation of the programs.There have been many criticisms of the fund and how its policies of across the board conditions have led to the statistical regression of many borrowing nations. Bird (2005) argues that the commonplace resentment proliferated during the 1990s to end the IMF would not have sat well decades earlier when countries severed communist ties left without funds (p.17). It is a commonplace scenario where countries in debt hold back to be in debt unable to