The role of the International Monetary Fund and World Bank.

At 1944 was created the International Monetary Fund with a goal to

inspect the rebuilding of the worlds international payment system.
International Monetary Fund and the World Bank was offered their
expertise those developing countries. IMF and World Bank play a role on a
program to protect those developing countries from the aftermath of
financial crisis to decreasing the liquidity. IMF is responsibility on the
innovation of program quickly help the countries in the problem of global
financial crisis that which country are facing with liquidity. According to the
program, 100 billion dollars of funds will be paid up the interest rate with
4% which is available to each country among the one year period of time.
The fund that provided by the IMF it is able to borrow maximum 5 times is
the biggest amount for the own country fund amount, the own fund
amount is to contribute by the country. After three months, the loan of a
country will be reprogramming with the three rates among the period of
12 months. IMF have a program is about loan granting, which have to
regulate the policies especially restrained for the poor economic country.
This also can restrain as a syringe for a country in banking system. For an
example, South Korea, Brazil, and Turkey are the first user development in
some countries. But now, these countries do not have any difficulties with
the loans, they are facing with the lack of cash due to enforcement of loan
granting by Western Bank. (Unknown, Unknown)
Besides that, the role of International Monetary Fund also involve
surveillance, lends, technical assistance. Every bank operation must have
surveillance, it is the main administer of financial developments,
economic, and the provision of policy advice is aimed especially at crisis
preventation. When a country in an economic problem, International
Monetary Fund will also lends some countries with balances of difficult
payment to supply the policies which is aimed at solving the underlying
problems and the loans to low income countries at a scarcity reduction.
IMF also provides training and technical assistance in some areas are the
jurisdiction in these countries. IMF has a role is provide some good advice
and financial support for helping certain countries to overcome problems
which is related to commercial loans and some issues with official. IMF has
being an important role to protect that country in debt to accomplish the

development that able to be maintained at a certain rate or level. The

International Monetary Fund also will help these countries with the foreign
exchange rate poverty that influence by balance of payment problem.
The World Bank had created financing facility which is the Global Food
Response Program is the fastest speed assistance transfer to the neediest
countries. In addition, the role of World Bank is keep on giving some ideas,
finance information, creative products and partnership to help opening up
these countries. On the other hand, World Bank also will invest the
infrastructure, social boon network and entrepreneurship that have an aim
to developing all the workplaces and abstain from social. World Bank is
giving funds to some poor countries that have sustainable development
and scarcity reduction. The World Bank group obtain the financial
resources using the way of directly borrowing funds from the international
bond market. World Bank is given assistance to developing countries
through long term financing of development programs and projects.
Furthermore, World Bank and regional will open up the institutions to lead
the

economic

more

efficient

and

developing

the

social

strategy.

Addressing regional and the issues of global that cross public boundary,
such as trade. Lastly, World Bank also provides to the poorest countries
that which the GNP is less than $865 per year, the special financial
assistance will go through the International Development Association
(IDA). (Bhullar, 2009)