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Relations between the International Monetary Fund and Djibouti began in 1978, at the time of Djibouti's membership. Since that time, Djibouti has taken out three different kinds of loans or credit lines from the IMF. A Stand-By-Credit, an Enhanced Structural Adjustment Facility, and Poverty Reduction and Growth Facility plan. [1]
Located strategically between Eritrea and Ethiopia, Djibouti is a main port city that is home to foreign military bases. Djibouti is also the country that blocks Ethiopia's borders from touching the Red Sea. For many years Djibouti was known as a poor African nation, however with recent mass foreign investment, as well as public infrastructure projects, and loans from the International Monetary Fund and other international banks, Djibouti is flourishing into a growing economy with intentions to become an economically strong African country. [2] Presently, Djibouti has seen tremendous GDP growth, reaching 6.7% in 2017. [3]
In 1996 the IMF extended the first Stand-By-Credit to Djibouti. It was the first line of credit that Djibouti had obtained from the IMF, and its total amount was for $6.7 million US dollars for a total loan period of 14 months which was to be used to fund multiple infrastructure projects. These projects included the infrastructure for their port, the airport, electric, water, and telecommunications throughout the nation. [4]
Even in 1996, when the first loan was received by the IMF, an evaluation had been done and it was determined that there was a need to secure funding for health and education. There was also a study that was to be conducted the decipher the lengths to which poverty entrenched the economy and the impact it had on the nation. [4]
The deal that Djibouti and the IMF made with each other was that the IMF would help with providing them a line of credit in order to fix their economy, fund infrastructure, and help them begin in a restriction-free trade and exchange deal in order to allow them to obtain foreign currency. In exchange, in order to ensure a balance of payments, the IMF imposed the conditions of i) cutbacks to the nominal wage bill ii) reduction in defense and security personnel (which the World Bank was requested to help with), and iii) reform of the civil service system. [4]
In 1997 and 1998 Djibouti filed for two extensions of their Stand-By-Credit loan, in order to give them more time for restructuring. In the Fall of 1999 was the first ESAF (Enhanced Structural Adjustment Facility) loan that was granted to Djibouti from the IMF. This loan was valued at $26.5 million US dollars. [5] It was determined by the IMF that Djibouti had made significant progress from 1996 - 1998 in order to be able to grant them long term loan like the ESAF. The goal was to maintain yearly GDP growth at a steady 3%.
At the conclusion of the ESAF loan, which concluded in 2004, there was a 4-year gap until another IMF staffer was able to release another evaluation of Djibouti. [1]
In 2008, the IMF approved a $20 million PRGF (Poverty Reduction and Growth Facility) loan, which was to be aimed primarily at fighting poverty in the region. [6] During the past few years it had been established that Djibouti had maintained a healthy amount of growth due to foreign investment in their port, in order to take on a new loan from the IMF. This loan would be extended until 2012. [1]
With the increase of Chinese investment, an approved Chinese military base, a massive influx of Chinese foreign investment, as well as supplementations of funds by the IMF, Djibouti has been able to maintain a steady increase in GDP growth while maintaining a low inflation rate. [7] Funds received from China came with the understanding that Djibouti, along with many other countries, would help in the structuring and establishing of the Chinese Belt and Road Initiative in their respective countries. [8]
The IMF continues to fund Djibouti's ventures however, it has less of a need for loans from the IMF with the constant flow of foreign investment. Presently Djibouti holds $12.03 million in outstanding payments owed. [1]
The economy of Cameroon was one of the most prosperous in Africa for a quarter of a century after independence. The drop in commodity prices for its principal exports – petroleum, cocoa, coffee, and cotton – in the mid-1980s, combined with an overvalued currency and economic mismanagement, led to a decade-long recession. Real per capita GDP fell by more than 60% from 1986 to 1994. The current account and fiscal deficits widened, and foreign debt grew. Yet because of its oil reserves and favorable agricultural conditions, Cameroon still has one of the best-endowed primary commodity economies in sub-Saharan Africa.
The economy of Djibouti is derived in large part from its strategic location on the Red Sea. Djibouti is mostly barren, with little development in the agricultural and industrial sectors. The country has a harsh climate, a largely unskilled labour force, and limited natural resources. The country's most important economic asset is its strategic location, connecting the Red Sea and the Gulf of Aden. As such, Djibouti's economy is commanded by the services sector, providing services as both a transit port for the region and as an international transshipment and refueling centre.
The economy of Ecuador is the eighth largest in Latin America and the 69th largest in the world by total GDP. Ecuador's economy is based on the export of oil, bananas, shrimp, gold, other primary agricultural products and money transfers from Ecuadorian emigrants employed abroad. In 2017, remittances constituted 2.7% of country's GDP. The total trade amounted to 98% of the Ecuador's GDP in 2017.
Gross Domestic Product (GDP) in Niger was worth 13.68 billion US dollars in 2020, according to official data from the World Bank, based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets. Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019 with a relatively low per capita income, and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism. Economic activity centers on subsistence agriculture, animal husbandry, re-export trade, and export of uranium.
The economy of the Republic of the Congo is a mixture of subsistence hunting and agriculture, an industrial sector based largely on petroleum extraction and support services. Government spending is characterized by budget problems and overstaffing. Petroleum has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Nowadays the Republic of the Congo is increasingly converting natural gas to electricity rather than burning it, greatly improving energy prospects.
The economy of Tanzania is a lower-middle income economy that is overwhelmingly dependent on agriculture. Tanzania's economy has been transitioning from a command economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.
The economy of Yemen is one of the poorest and least-developed in the world. At the time of unification, South Yemen and North Yemen had vastly different but equally struggling underdeveloped economic systems. Since unification, the economy has been forced to sustain the consequences of Yemen's support for Iraq during the 1990–91 Persian Gulf War: Saudi Arabia expelled almost 1 million Yemeni workers, and both Saudi Arabia and Kuwait significantly reduced economic aid to Yemen. The 1994 civil war further drained Yemen's economy. As a consequence, Yemen has relied heavily on aid from multilateral agencies to sustain its economy for the past 24 years. In return, it has pledged to implement significant economic reforms. In 1997 the International Monetary Fund (IMF) approved two programs to increase Yemen's credit significantly: the enhanced structural adjustment facility and the extended funding facility (EFF). In the ensuing years, Yemen's government attempted to implement recommended reforms: reducing the civil service payroll, eliminating diesel and other subsidies, lowering defense spending, introducing a general sales tax, and privatizing state-run industries. However, limited progress led the IMF to suspend funding between 1999 and 2001.
The heavily indebted poor countries (HIPC) are a group of 39 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund (IMF) and the World Bank.
Structural adjustment programs (SAPs) consist of loans provided by the International Monetary Fund (IMF) and the World Bank (WB) to countries that experience economic crises. Their purpose is to adjust the country's economic structure, improve international competitiveness, and restore its balance of payments.
The Enhanced Structural Adjustment Facility (ESAF) was a program of financial assistance given to poor countries from December 1987 through 1999 through the International Monetary Fund. It replaced the Structural Adjustment Facility (SAF) and was itself replaced by the Poverty Reduction and Growth Facility (PRGF).
The Haiti economic reforms of 1996 were designed to rebuild economy of Haiti after significant downturns suffered in the previous years. The primary reforms were centered on the Emergency Economic Recovery Plan (EERP) and were followed by budget reforms.
El Salvador has been a member of the International Monetary Fund (IMF) since 1946. Their quota currently consists of 287.20 million SDR. The country has received loans from the IMF in the past, but most recently has received only standby loans and currently has no outstanding payments. As of June 2017, the standby arrangements total 1,442,300 SDR while the government has only drawn upon 132,250 SDR.
Mongolia's relations with the International Monetary Fund became official on February 14, 1991 when Mongolia became a member.
Poland was one of the founding members of the International Monetary Fund (IMF) in 1945. Under pressure from the Soviet Union, the country withdrew in 1950, believing that the organization had become a tool for the United States. Poland rejoined the IMF in 1986, following the end of martial law in Poland (1981–1983) and the withdrawal of the US veto against Polish membership.
The Democratic Republic of Congo (DRC) joined the International Monetary Fund (IMF) on September 28, 1963.
Greece is one of the original members of the International Monetary Fund, joining it on December 27, 1945. It has a quota of 2,428.90 million SDRs and 25,754 votes, 0.51% of the total IMF quota and votes. Greece has been represented on the IMF Board of Governors by Minister of Finance Christos Staikouras since 2019. Greece elects an Executive Director on the fund's Executive Board with Albania, Italy, Malta, Portugal and San Marino. Michail Psalidopoulos is the elected alternate director. Greece has signed two loan agreements with the IMF: a Stand-By Arrangement from 2010 to 2012 and an agreement under the Extended Fund Facility from 2012 to 2016, borrowing a total of 27,766.3 million SDR. Greece owes the IMF 6,735.64 million SDR, and is the fund's third-largest borrower. In 2018, the fund began conducting annual post-program monitoring of Greece in addition to its annual Article IV consultation.
Bosnia and Herzegovina declared independence from the state formerly known as Yugoslavia in 1992 and joined the International Monetary Fund (IMF) on December 14, 1992. Bosnia and Herzegovina officially succeeded to the IMF membership of the former Yugoslavia on December 20, 1995, thereby giving the country access to the quota, as well as outstanding loans and payments, on behalf of Yugoslavia. Bosnia and Herzogovina, often synecdochically referred to as Bosnia, currently has an IMF quota of 265.20 million SDR. Bosnia is part of the constituency that contains primarily Eastern European countries but is led by the Netherlands and Belgium. Bosnia controls 4,117 votes of the constituencies 273,058 total votes, and the constituency overall accounts for 5.43% of the IMF's total votes. Since Bosnia joined the IMF in 1992, the country has utilized five borrowing arrangements, four of which were under the Stand-By Arrangements (SBA) and one of which was under the Extended Fund Facility (EFF). The first of the five arrangements was enacted in May 1998 and the most recent was enacted in September 2016. As of September 2019, Bosnia has 126.82 million SDR outstanding loans and/or purchases from the IMF.
Jamaica first joined The World Bank Group (WBG) on the 21st of February, 1963, when the island nation became a member of The International Bank for Reconstruction and Development (IBRD), which lends to middle and low income nations. This occurred the same month as Jamaica joining the International Monetary Fund (IMF), and one year after declaring political independence. Since joining The World Bank, Jamaica has received in excess of $3 billion US Dollars in loans and grants. Jamaican Minister of Finance, Donald Sangster, led the Jamaican delegations to World Bank and International monetary Fund meetings between 1963 and 1966, while also serving as Governor of the World Bank and IMF. Sangster would go on to serve briefly as the Prime Minister of Jamaica.
Bolivia joined the IMF on December 27, 1945. Since 1945, Bolivia has cooperated with the IMF to achieve social reforms and economic growth. These efforts have involved strategies to reduce poverty, increase social equity, improve the education system and healthcare system, and expand social services to rural populations and underserved urban communities. Since 1984, Bolivia has been an active client of the fund, accessing 19 credit lines with the fund since joining.
Nicaragua joined the International Monetary Fund (IMF) on March 14, 1946 and to date has made 18 arrangements with the IMF. Its current quota is 260 million in Special Drawing Rights (SDR).
