Abstract
The chapter examines Russia's cooperation with international financial organizations for the period from 1992 to 2021. Attention is paid to cooperation programs with the International Monetary Fund and projects implemented jointly with the International Bank for Reconstruction and Development, the Multilateral Investment Guarantee Agency, and the International Finance Corporation. The participation of Russia in the projects of the International Development Association is shown. The chapter analyzes the problems of Russia's cooperation with “old” international organizations.
TopBackground
More than 2000 studies are devoted to the research of the development, functioning of international organizations and their impact on the economies of different countries across the world. Let us review some of them.
Key Terms in this Chapter
Precautionary and Liquidity Line (PLL): Is a form of lending to IMF member countries with sound economic performance. May be granted if the country does not meet the criteria for the provision of the FCL. Issued for a period from 6 months to 2 years. There are restrictions on the amount of funds provided: 1. For 6 months, an amount of no more than 250% of the quota is provided. In exceptional cases, it can be increased up to 500% of the quota. 2. A limit of 500% of the quota is set for 1-2 years. The maturity period is 3.5-5 years.
Concessional Lending: Is used to support low-income IMF member countries. Is issued to reduce poverty and stimulate economic growth in the country. The new lending terms have been used since 2010. The extended credit facility (ECF) is used for lending. Financial assets under the ECF are issued at a zero interest rate, for a period of up to 5.5 years, the full maturity is 10 years.
Stand-By (SBA): Is a loan that is provided to the member countries of the IMF under certain conditions. The purpose of obtaining a loan has to be approved. The bank reserves the approved amount by a certain date, and the client uses it in full or in part. The SBA is designed to overcome short-term balance of payments problems. It is issued for a period of 12 to 24 months. The loan repayment period is 3.5 - 5 years from the date of actual receipt of funds. Such a loan has been issued since 1952.
Extended Fund Facility (EFF): Was created to help countries overcome significant balance of payments problems. Fundamental economic reforms are required to solve the problems. The usual loan term is 3 years. The maximum loan term is 4 years. The maturity period is 4.5 - 10 years from the date of the actual provision of funds. Used since 1974.
Flexible Credit Line (FCL): Is a form of lending to IMF member countries with stable economies and good economic performance. If the economic indicators of the country meet the criteria of the IMF, then access to the financial resources of the IMF is granted immediately. The period of validity of the FCL is 1 or 2 years. The maturity period is 3.5-5 years.