The IMF in Change – Loan from Norges Bank

Abstract

The International Monetary Fund (IMF) is important in managing international economic and financial crises. In the past year, the IMF has provided crisis-related loans to several countries experiencing balance of payments problems and has approved loans to potentially vulnerable countries. The Fund’s surveillance of economic developments has been strengthened. At the same time, its functions, institutional governance structure and lending capacity are being assessed. Norway, under the auspices of Norges Bank, is now providing a loan to the IMF in the amount of NOK 30 billion to contribute to ensuring that the Fund has sufficient resources if the need for further substantial IMF lending should arise. This commentary discusses the IMF’s new role in the world economy and presents the background for Norway’s loan to the IMF.