Among the many requirements a member country must meet before the International Monetary Fund (IMF) will lend it money, none is more important than the “lending in arrears” policy. Yet, as Gregory Makoff writes, only a few specialists understand how it works, and the IMF itself has trouble speaking clearly on the topic. With this policy brief, Makoff overviews the IMF’s lending into arrears policy, its historical origin, the contention over its use during Argentina’s 2005 debt restructuring and its recent amendment.
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