When does IMF give loans? | Nitish Rajput |

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The International Monetary Fund (IMF) provides loans to member countries under specific circumstances when these countries face balance of payments problems or financial crises. The primary objective is to help member nations stabilize their economies and restore sustainable growth. Loans are typically extended when countries experience a shortage of foreign exchange reserves, making it challenging to meet their international financial obligations such as importing goods and servicing external debt.

To qualify for an IMF loan, a member country must typically design and commit to implementing a comprehensive economic program aimed at addressing the underlying causes of its financial difficulties. This program often includes policy measures related to fiscal discipline, monetary policy, exchange rate management, and structural reforms. The IMF's financial support is usually seen as a temporary measure to bridge the gap and facilitate the country's return to financial stability. IMF loans come with specific terms and conditions, including economic policy adjustments and monitoring to ensure the country is making progress toward its goals and can eventually regain its financial independence.