Essay On Third world and International Monetary Fund – IMF
Most of the third world nations falling within low-income countries have over the years depicted a developing notion towards macroeconomic stability. The nations have a characteristic trait in encountering long term economic problems, an aspect that in most instances calls for cancellation or reliefs on debts. These economies are now being integrated more openly to the global economy. More of these low-income countries are now being nurtured by their own private financial sectors as they keep on attracting foreign investment and joining international capital markets.
Such kinds of positive amendments can be tailored at making financial support more flexible for the diversity of the low-income countries. These amendments are inclusive of the provision of extended credit facilities. This is in a bid to provide engagement in sustenance over the medium to long term in cases of medium term balances on payments needs. The facility may provide improved flexibility on program extensions, formal poverty reduction documents along with the timing in the structural reforms. The standby credit facility will on the other hand provide support to countries experiencing adjustment needs or short-term finances as a result of external or domestic shocks. The facility may also be put forward in assisting nations that require help from time to time despite the absence of a protracted balance of payments. This facility may also be used as a provision of insurance on a precautionary basis. A rapid credit facility will on the other hand provide improved financial support for low-income countries facing urgent financial needs. This may be incorporated with successive drawings especially for countries experiencing fragile situations like post conflicts. The rapid credit facility will also provide flexible assistance in situations whereby other facilities may not be implemented (Goldstein).
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