The IMF’s Claims
The IMF has announced several reforms in its lending practices and governance, in order to move away from the stigma of its past. IMF reforms after the global economic crisis include:
• Being more flexible in its loan programs, so that poor countries can increase spending to combat recession.
• Removing harsh conditions to freeze public wages and restrict social spending.
• Creating a Flexible Credit Line for countries with sound economic and institutional policies, and a Precautionary Credit Line that allows countries to borrow capital without meeting all the requirements of the flexible credit line.
• Increasing support to the poorest countries.
• Increasing voting shares for low-income countries who are most affected by the IMF’s policies.