Mention the conditions laid by IMF under structural adjustment programme?
Answers
Answer:
Conditions. Typical stabilisation policies include: balance of payments deficits reduction through currency devaluation. budget deficit reduction through higher taxes and lower government spending, also known as austerity.
Explanation:
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Answer:
Conditionality covers the design of IMF-supported programs—that is, macroeconomic and structural policies—and the specific tools used to monitor progress toward goals outlined by the country in cooperation with the IMF. Conditionality helps countries solve balance-of-payments problems without resorting to measures that are harmful to national or international prosperity. At the same time, the measures are meant to safeguard IMF resources by ensuring that the country’s balance of payments will be strong enough to permit it to repay the loan.