Loans obtained from the International Monetary Fund (IMF) hold a special place among the foreign debts of countries around the world. Argentina ranks first among the countries that owe the most to the IMF. Pakistan, Egypt, Ukraine and Ecuador are also among the countries with the largest debts to the IMF.
Why do countries borrow?
Economist Eyyub Kərimli told Globalinfo.az that the International Monetary Fund’s allocation of funds to countries is not linked to those countries being bankrupt, indebted or in difficult economic circumstances:
“The IMF also provides financial support to developed countries. This is mainly related to concessional financing opportunities, infrastructure development and support for the introduction of new technologies. For example, one of the main reasons for Argentina’s long-standing cooperation with the IMF is related to curbing inflation and resolving external debt problems. Countries such as Egypt and Ukraine also attract financial resources to implement various projects depending on their economic needs.”
Eyyub Kərimli
According to the economist, the IMF also supports countries in ensuring economic stability and implementing reforms:
“The IMF helps implement economic reforms and maintain macroeconomic stability. This support can contribute to countries’ economic development. The IMF is an international financial institution that provides financial and technical support in various forms to developed, developing and least developed countries.”
Zaira Akifqızı
Globalinfo.az
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