Lending by the IMF to Programme Countries and Denmark’s Commitments to the IMF

Authors Gade, Thomas Pihl; Funch Sørensen, Louise; Malthe-Thagaard, Sune
Subject IMF; International cooperation; International Economy
Type Monetary Review  
Year 2014
Published 3 July 2014
Link to publication Monetary review 2nd Quarter 2014
In recent years, the IMF has granted crisis loans to several countries and approved credit to potentially vulnerable countries via its precautionary facilities. European countries in particular have received IMF loans since the beginning of the global crisis. To meet the demand for loans, the IMF adapted its lending facilities and significantly expanded its lending capacity via several measures. In 2010, it was decided to double the IMF’s permanent resources consisting of the member countries’ subscriptions, or quotas. In addition, several countries, including Denmark, have committed themselves to contributing temporary resources with the aim of ensuring sufficient capacity of the IMF. Denmark sees a great strength in an international organisation such as the IMF that seeks to promote international economic and financial stability. Loans to the IMF can be regarded as highly secure, and, historically, the IMF member countries never suffered any losses by making quota resources or temporary loans available.