- The International Monetary Fund was conceived in 1944 at the United Nations Bretton Woods Conference in New Hampshire, United States.
- The IMF and the World Bank are called Bretton Woods twins.
- The IMF is a permanent observer at the UN.
- It is an organization of 190 countries. India is a founder member of the IMF.
- The mandate of the IMF as follows:
- To promote international monetary cooperation;
- To facilitate the expansion and balanced growth of international trade;
- To promote exchange stability;
- To assist member countries in correcting maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity;
- To assist in the elimination of foreign exchange restrictions which hamper the growth of world trade.
Why in News?
- The International Monetary Fund has preliminarily agreed to extend a $2.9 billion loan to Sri Lanka to help restore economic stability to the crisis-hit South Asian country.
- The loan will be made under the IMF’s Extended Fund Facility, which helps countries deal with balance of payments or cash flow problems. It will only be disbursed after satisfactory debt restructuring, including debt relief arrangements have been struck between Sri Lankan authorities and the country’s creditors.