Question

Discuss the financial assistance provided by international monetary fund

Answer 1

In addition, as a fund, it may offer financial assistance to nations in need of correcting balance of payments discrepancies. The IMF is thus entrusted with nurturing economic growth and maintaining high levels of employment within countries. The IMF gets its money from quota subscriptions paid by member states

Answer 2

Financial assistance is provided by IMF-
1. To countries with ailing economy.
2. To countries which are reconstructing after an event such as civil war.
3. To a country which is newly formed.
4. To any country which needs fund for a specific reason.

But this might not be a good option for a country, because-
1. IMF is run by powerful western nations. If a country is not in their 'good' list, that country might not receive any funds at all.
2. The interest rate is high for the loans that are provided to countries. A country might never recover from the debts. Such happened to Greece recently.
3. The powerful countries' corporate business enters the market of the weak country with relaxed terms. This harms the homegrown business of the country which, in turn, farther causes loss to the economy.