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IMF Research PaperIMF Research PaperINTERNATIONAL BUSINESS BUS4010BILLIE SAUNDERS
IMF Research Paper1The two countries that will be researched will be India from Asia and Zambia fromAfrica. Both countries accept loans from The International Monetary Fund (IMF) and the WorldBank. The research will discuss the terms of the loans as well as if the loans achieved the initialpurpose. Also, the research will detail if the loans helped the countries or made things worse aswell as discussing if the loans helped the prospects for business.IndiaThe first country that is going to be researched is India. In December of 1945, Indiaaccepted IMF terms and conditions. IMF lent funds to India in the name of SAP, also known asStructural Adjustment Programs. According India has only taken two loans from IMF, which firstloan was 1981-1982 and second loan was in 1991-1993 (IMF, 2018). There were twoarrangements to the loan in 1981-1982, which India borrowed SDR $3.9 billion under anExtended Fund Facility. The second loan was in 1991-1993 and India borrowed a total of SDR2.2 billion (IMF, 2018). The loan in 1991-1993, has tow parts and the first part lead to Indiaborrowing SDR 1.4 of the total of SDR 2.2 billion under the Compensatory Financing Facility.India was in need of both loans, but the loan in 1991 was in deep forex crisis where India hadfunds within a week (IMF, 2018). India has borrowed from IMF since 1993, because countriesfeel borrow from IMF as a last resort. There are too many regulations and stipulations withborrowing from the IMF, which is why it is a last resort for borrowing. With SAP, IMF applied

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Term
Spring
Professor
N/A
Tags
Business, Debt, International Monetary Fund

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