11. IMF It is noteworthy that the international Monetary Fund (IMF) appears to be developing two forms of credit for the economies of Third World countries. Money is flowing very freely from the IMF – much more so than ever before, which has bankers worried that the creditworthiness that used to be associated with a loan from the IMF no longer carries the same import. It is feared that the credit standards of the IMF have been lowered.Commercial banks, who will be funding most of the projected $220 billion deficit of the developing countries, must be able to maintain their confidence in the IMF programs. The managing director of the IMF insists that the nations which are recipients of these loans have exhibited successful economic reform, a prerequisite for becoming eligible for the loans.Forty – nine percent of the IMF debt was shouldered by industrial nations. It is now down to 9 %, while the share carried by oil – poor developing countries has risen from 51% to 91%. Also , 45% of the Fund’s outstanding loans are to nations with gross national products of less than $700 per capita.
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