The stand-by arrangements of the International Monetary Fund : a commentary on their formal, legal, and financial aspects /

Includes index.

Includes bibliographical references: p. 213.

This book written by Mr Gold, who was a general counsel for the International Monetary Fund and who has been with the organization since its inception, writes that "the stand-by arrangement is the most original instrument of policy the Fund has created." It highlighted the arrangement which appears to be a routine annual line-of-credit under which any banker might arrange to make loans, without further question, to an established customer at any time during the year up to a specified maximum. But the stand-by differs
from the line of credit in a very important respect. It is conditional: conditional upon the measures (eg an approved "stabilization programme") to be adopted by the borrowing country to remedy the balance-of-payments disequilibrium which forced it to seek financial support from the Fund. It is the system under which the international organization injects international considerations into such national financial policies as those relating to the control of inflation and into other politically sensitive areas.

usc 30/04/2018

Loans