Imf That is, the International Monetary Fund is very much discussed at this time. The reason is to approve a $ 1 billion loan for Pakistan. The IMF has approved this loan at a time when action was going on against terrorism in India. In such a situation, a lot of questions are being raised on the IMF. The IMF was founded by 44 countries in the year 1944. Today the number of its members has been 191. Now the question will be in the minds of many people that where does the money come from the IMF who give loans to the whole world? Let’s know.
Where does money come from IMF
IMF has money from three sources. First- Member Kota. Second- Interest Income. The third is NAB and BBA. The primary source member of the money coming to the IMF is Kota. Member quota is a kind of fee, which the member country has to pay for membership. It can also be called membership fees. The size and status in the global economy of a country determines its quota. Due to this, the voting power of that country is determined. Talking about other sources, when the IMF gives a loan to a country, it also earns interest from it. Apart from this, the IMF also takes loans from other countries if needed. This is called New Arrangements to Borrow (NAB). If the IMF member takes loans from the country, it is called bilateral borrowing agreements (BBA). India has not taken any debt from IMF after 1993.
Get 3 types of debt
The IMF gives loans to its members in 3 formats. These are Rapid Financing Arrangement, Extended Fund Facility and Stand by Arrangements. They have different conditions. If the debt -ridden country accepts the conditions, then the process of giving loan begins. The largest debtors of the IMF are Argentina, Ukraine, Egypt and Pakistan.
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