individual states.
2. The extended financing facility was created in 1974, to provide for loans larger than tranche quota loans, and to provide for longer repayment periods than those associated with tranche loans. The extended facility loans were intended for nations where balance of payments problems were attributable to structural weakness in the internal economy or weak external positions that precluded the implementation of an effective development program. This financing facility of the IMF strengthens the role of the individual states.
3. A Trust Fund was established in 1976, to both make direct distributions and to make loans to low-income developing nations which are also members of the IMF. Resources for the Trust Fund are derived from sales of IMF gold holdings. This financing facility of the IMF strengthens the role of the individual states.
4. A supplemental financing facility was established in 1979 that permits increased access to IMF resources by member nations experiencing relatively (to gross domestic product) high payments imbalances. In 1981, access through the supplemental fund was further expanded to provide even larger loans in relation to quotas. The supplemental financing facility is funded through borrowed resources. A second subsidy account was established to assist low-income developing nations meet the higher charges associated with loans made through the supplemental financing facility. These financing facilities of the IMF strengthen the role of the individual states.
All of the special financing facilities described above, together with the tranche quota loans, provide the balance of payments loan framework within which the IMF conducts its primary activities in the 1990s. Many concepts and criteria have been established to govern the extension of balance of payments and development loans designed to foster economic stability. Perhaps the most controversial of all of the concepts ...