The IMF is a global organization that works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries.

• The IMF is governed by and accountable to 190 countries that make up its near-global membership.
• The IMF was founded by 44 member countries that sought to build a framework for economic cooperation.
• The IMF was established in 1944 in the aftermath of the Great Depression of the 1930s.
• The IMF is able to lend about $1 trillion to its member countries.

What does the IMF do?

Policy Advice: A core responsibility of the IMF is overseeing the international monetary system and monitoring members’ economic and financial policies, an activity known as surveillance. Through surveillance at the global, regional, and country levels, the IMF identifies potential risks to stability and recommends appropriate policy adjustments to sustain economic growth and promote financial and economic stability.

Financial Assistance: Unlike development banks, the IMF does not lend for specific projects. Instead, the IMF provides financial support to countries hit by crises to create breathing room as they implement policies that restore economic stability and growth. It also provides precautionary financing to help prevent crises. IMF lending is continuously refined to meet countries’ changing needs.

Capacity Development: The IMF provides technical assistance and training – known as capacity development – as one of its core functions. Capacity development accounts for around a third of the IMF’s annual spending. It is available to all members upon their request and is tailored to a country’s specific needs. Capacity development can help countries to improve tax collection and bolster public finances. It can help countries to modernize their monetary and exchange rate policies, develop legal systems, or strengthen governance. Capacity development also can help countries collect and disseminate data to inform decision-making.

How is the IMF organized?

At the top of its organizational structure is the Board of Governors, consisting of one governor (usually the minister of finance or the governor of the central bank) and one alternate governor from each member country. All powers of the IMF are vested in the Board of Governors. The day-to-day work of the IMF is overseen by its 24-member Executive Board, which represents the entire membership and is supported by IMF staff. The Managing Director is the head of the IMF staff and Chair of the Executive Board and is assisted by four Deputy Managing Directors. The IMF has 18 departments that carry out its country, policy, analytical, and technical work.

Where the IMF Gets Its Money

The money the IMF loans to its members on its best – or non-concessional – terms comes from member countries, mainly through their payment of quotas. Multilateral and bilateral arrangements can supplement quota funds and plays a critical role in the IMF’s support for member countries in times of crisis. The IMF’s current total resources of about SDR 983 billion translate into a capacity for lending of about SDR 696 billion (around US$925 billion), as at end-June 2023.

IMF Support for Low-Income Countries

The IMF assists low-income countries (LICs) with financial and other support. The IMF’s surveillance program provides continuous monitoring of member countries’ economic and financial policies. Discussions with country authorities focus on the impact of their economic policies on stability and growth and the desirable policy measures. Capacity building typically focuses on how LICs can boost domestic revenues, manage public finances and monetary policy, regulate their financial system, and develop statistical systems. Capacity building helps IMF member countries to design and implement sound policies and to advance toward the United Nations’ Sustainable Development Goals.

Financial System Soundness

Supporting sound financial systems Weak financial institutions, inadequate regulation and supervision, and lack of transparency have been at the heart of global financial crises. These have highlighted the importance of systemic risk monitoring and management, which is why the IMF has stepped up efforts to help countries support sound financial systems.