Fund(IMF) · Part 2

of the IMF temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity. To shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members. The mandate of the IMF gives it a unique character as an international monetary institution having broad oversight responsibilities for the proper functioning and development of the international and monetary financial system. Functions of the International Monetary Fund: The IMF pursues a wide range of functions in accordance with its mandate. It is as follows: Surveillance of Members’ Economic Policies: nations who are members agree to pursue economic policies that are consistent with the objectives of the IMF and the articles of agreement confer on the IMF the legal authority to oversee compliance with this obligation which makes the IMF the only Organisation that has the mandate to examine regularly the economic conditions of virtually all countries in the world. Financing Temporary Balance of Payment Needs: in order to enable countries to make orderly corrective measures and avoid disorderly adjustment of the external imbalance, the IMF lends to its member countries to provide a temporary respite from balance of payments. In addition to providing direct funding to member countries, the IMF also plays a catalytic role in mobilizing external financing for countries’ balance of payment needs. Combating Poverty in Low Income Countries: The IMF provides low-income member countries with concessional loans to help these countries in their efforts to eradicate poverty. In this endeavour, the IMF works closely with the World Bank and other development partners. In addition, the IMF participates in two international initiatives to provide debt relief (i) Heavily Indebted Poor Countries (HIPC) and (ii) Multilateral Debt Relief Initiative (MDRI). Mobilizing External Financing: The IMF’s endorsement of a countries policies serve as an important catalyst in mobilizing external funding from bilateral and multilateral lenders and donors. Policy assessments and recommendations of the IMF also provide important signals to investors and