WHAT IS INTERNATIONAL MONETARY FUND?
 The International Monetary Fund (IMF) is an international institution bringing together 190 countries, whose purpose is to "promote international monetary cooperation, guarantee financial stability, facilitate international trade,  contribute to a high level of employment, to economic stability and to reducing poverty”[2].

 

 The function of the IMF is thus to ensure the stability of the international monetary system (IMS) and the management of monetary and financial crises.  For this, it provides credits to the governments of countries and financial aid or non-reimbursable financing to citizens who are experiencing financial difficulties jeopardizing the governmental organization of the country, the stability of its financial system (banks, financial markets) or  international trade flows with other countries.

                        IMF ROLE

 Since 1976, the defined role of the IMF has been primarily to support countries experiencing financial difficulties.  When a country is faced with a financial crisis, the IMF grants it non-reimbursable financing or donations in order to guarantee its solvency and prevent the outbreak of a financial crisis.

 Article I of the IMF's statutes sets out its aims: “To encourage international monetary cooperation;  to facilitate the harmonious expansion and growth of world trade;  promote exchange stability;  help establish a multilateral payments system;  temporarily, subject to adequate guarantees, its general resources at the disposal of Member States facing balance of payments difficulties.  More generally, and consistent with its other purposes, the IMF is responsible for ensuring the stability of the international financial system.  The IMF is in this sense, the last resort responsible for the liquidity of the international financial system, to avoid the blockage of exchanges and the contagion to the whole system (systemic risk) of temporary problems of solvency of a given country or  a given central bank.  It is a kind of “central bank of central banks and public treasuries”.

 In the context of the loans it grants, the IMF must guarantee to its contributors the proper use of the funds allocated to a particular country.  It is not only a question of delaying the crisis by granting temporary monetary aid, but of taking advantage of the respite granted by the loan to correct the structural causes of the economic difficulties.  Thus the IMF requires beneficiaries to put in place the economic policies it recommends: "structural adjustment policies".  Finally, the three major missions of the IMF are:

 

 grant non-reimbursable financing to countries in financial difficulty;

 advise member states on their economic policy;

 provide technical assistance and training offers to Member States in need.

The financing conditions of the International Monetary Fund are the most important in the non-repayable financing procedure and this is applied to all beneficiaries. Any beneficiary wishing to subscribe to financing must be at least 18 years old. This condition must not be respected by the beneficiary due to finance laws. The beneficiary must have a document containing detailed plans for his investment project which he must submit to the file manager. All beneficiaries must have an active bank account, only bank accounts are accepted for the transfer of financing funds. After obtaining the financing funds by the beneficiary, a visit is made to the beneficiary's investment site to verify whether the funds are actually invested in the project listed in the financing contract. The personal contribution of the beneficiary is required when drawing up the financing contract: the International Monetary Fund does not cover the costs of the notary's fees. After signing the financing contract, the financing funds will be credited to the beneficiary's bank account. The conditions are applied to all beneficiaries.