When a country borrows from the IMF

Question

Quizplus · Accepted Answer

When a country borrows from the IMF, it receives funds in tranches, each of which is dependent on the completion of reform targets. These reform targets are a set of conditions that the country must meet in order to receive the next tranche of funds. This is designed to ensure that the country is using the funds effectively and efficiently, and that it is making progress toward long-term economic stability. Countries may borrow any amount they request, but the amount that is approved will depend on the country's economic situation and its ability to repay the loan.

When a Country Borrows from the IMF