Once a nation joins the IMF they are able to borrow 25% of their quota each year.The first loan,which could be borrowed without any restrictions or conditions,is referred to as a credit tranche.

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The IMF does allow member countries to borrow, but the first loan, which can be borrowed without stringent conditions, is referred to as the reserve tranche, not the credit tranche. Credit tranches require members to meet certain conditions.

Once a Nation Joins the IMF They Are Able to Borrow