IMF: 1944, currently 184 countries are members of the IMF, the Russian Federation became a member in 1992, headquarters in Washington. Main goals:
- promoting international cooperation in the foreign exchange sector, as well as international trade and employment.
- Ensuring the functioning of the MVS
- Assistance in eliminating currency restrictions
- Providing loans and credits in foreign currency
The authorized capital of the IMF is formed from contributions from its members. As of 1997 authorized capital – $198 billion. In 2001 The IMF ranked 3rd in terms of gold reserves and is ahead of the United States and Germany.
The IMF is an issuer of Specialized Drawing Rights (SDRs).
The highest body is the Board of Governors.
Main functions:
Reception of new members
Approval of changed parities
Revision of quotas
Selection of Executive Directors
Sessions of the Board of Governors are held annually. Operational activities are managed by the executive board. One of the functions is the selection of a managing director. From 1987-2000 Michelle Camdessus. Since March 23, 2000 – F. Feller. The IMF staff is 2,100 experts, led by the Managing Director.

World Bank Group
The World Bank Group consists of 5 closely related institutions:
1. International Bank for Reconstruction and Development IBRD - in 1945, is the main component of the World Bank.
2. M/n Development Association IDA - 1960
3. M/n financial corporation MFK – 1956
4. Multilateral Investment Guarantee Agency (MIGA) - 1988
5. International Center for Settlement of Investment Disputes (ICSID) – 1966
The IBRD was created in Bretton Woods, headquartered in Washington, unites 184 countries of the world, authorized capital is $150 billion and is formed through contributions from all members, currently focusing on developing countries and countries with economies in transition. The Russian Federation joined in 1992.
Main goals:
- Promoting the development of the territory of the Member States by encouraging investment for productive purposes.
- Encouraging private foreign investment
- Stimulating the growth of the country’s economy and helping to maintain balance of payments balance by encouraging international investment
IBRD structure:
The Board of Governors is the highest body, represented by each member of the IBRD, which meets annually.
The board of directors - executives - carries out the current work
Development Committee - through investing and providing concessional loans, fighting poverty
Bank President - J. Wolfensohn
The IBRD charges interest to its borrowers at a rate that is set at three-quarters of one percent above the amount paid on the borrowed funds. Loans must be repaid in 15-20 years; Before repayment of the principal amount begins, a grace period of three to five years is provided.
Less than five percent of IBRD funds come from contributions from countries that have become members of the World Bank. There have never been cases of default on IBRD loans.
Both the World Bank and the IMF were created in 1944 at a conference of world leaders in Bretton Woods, New Hampshire. The purpose of the two "Bretton Woods Institutions", as they are sometimes called, was to put international economics on a solid foundation after World War II. The missions of the World Bank and the IMF are complementary, but their individual roles are quite different.
1. The World Bank is a lending institution whose purpose is to help integrate countries into the broader world economy and promote long-term economic growth to reduce poverty in developing countries. The IMF monitors world currencies, helps maintain an orderly payment system among all countries, and provides loans to countries that face serious balance of payments deficits.
2. While the World Bank provides loans for policy reforms and projects, the IMF is more concerned with policy issues only.
3. The IMF provides loans to member countries having short-term problems meeting foreign payment needs and attempts to achieve full convertibility among its member countries' currencies under the flexible exchange rate system in place since 1973.
The World Bank provides loans only to developing countries or countries with economies in transition, while any member countries (rich and poor) can attract the services and resources of the IMF

Introduction 3

Chapter I. International credit organizations 4

1.1. Goals, principles and classification. World Bank Group 4

1.2. International Monetary Fund (IMF) 13

1.3. International Bank for Reconstruction and Development (IBRD) 21

Chapter II. Lending to the IMF and World Bank in Russia 27

2.1. Russia and the IMF. Collaboration Analysis 27

2.2. Russia and IBRD. Collaboration Analysis 36

2.3. Russia's relations with the IMF and IBRD in 2004-2005. 41

Conclusion 46

List of references 47

Attention!

This is a TRIAL VERSION of work No. 3542, the price of the original is 500 rubles. Designed in Microsoft Word.

Payment. Contacts.

Introduction

International monetary, credit and financial relations are an integral part and one of the most complex areas of the market economy. They focus on the problems of the national and world economy, the development of which historically runs parallel and is closely intertwined. As economic relations internationalize, international flows of goods, services, and especially capital and credit increase. Leading industrialized countries, which act as rival partners, have a great influence on international monetary, credit and financial relations. Recent decades have been marked by the intensification of developing countries in this area.

Under the influence of new factors, the functioning of international monetary, credit and financial relations has become more complex and is characterized by frequent changes. Therefore, the study of world experience is of great interest for the emerging market economy in Russia. Gradual integration of Russia into world community, joining the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) group require knowledge of the generally accepted civilized code of conduct in the world markets of currencies, loans, securities, and gold.

The object of this study is international credit organizations.

The subject of the study is the peculiarities of interaction between the IMF and the World Bank, as the most important credit institutions, with Russia

The purpose of this work is to study the structure of the International Monetary Fund (IMF) and the group of the International Bank for Reconstruction and Development (IBRD).

To achieve this goal, we define the research objectives:

 Consider the mechanisms of action, conditions and system for providing loans from the IMF and the World Bank.

 Study the features of international monetary, credit and financial relations in Russia.

 Features of lending and the influx of foreign investment into Russia, problems of participation in international financial institutions.

 Reveal the essence, evolutionary formation, functions and role of credit institutions in the economy

 Justify the places and roles of credit institutions in the activities of Russia.

 Identify areas for improving interaction between the IMF and the World Bank and Russia.

 Consider methods for forming and maintaining interaction between the IMF and the World Bank and Russia.

When writing the work, the following general scientific research methods were used: abstraction, induction, deduction, analysis and synthesis, analogy, comparison, observation, dialectics.

The course work consists of an introduction, two chapters, a conclusion, a list of references and applications.

The first chapter of the course work summarizes theoretical approaches to the activities of credit institutions. The activities and development of international credit organizations IMF, IBRD and others are analyzed.

In the second chapter of the course work, the special role of the IMF and IBRD in Russia’s activities is substantiated and methods of forming and maintaining interaction with them are analyzed.

Chapter I. International credit organizations

1.1. Goals, principles and classification. World Bank Group

The increased internationalization of economic life has led to a sharp increase in the number of problems related to the world economy and international economic relations that cannot be resolved on a bilateral basis, but require the participation of a significant number of states or even all states of the world, which is especially important when solving global problems facing humanity. But it's not just about the quantitative side. The increasing complexity of the issues to be resolved in everyday economic life necessitates their prompt resolution with the help of an institutional, permanent mechanism. Such a mechanism is intended to be international economic organizations.

All international economic organizations are usually divided into two categories: intergovernmental, whose participants are directly states, and non-governmental, which includes associations of producers, companies and firms, scientific societies and other organizations.

Various classifications of these organizations are possible. IN modern conditions It is advisable to distinguish the following types:

1. Interstate universal organizations, the purpose and subject of activity of which are of interest to all states of the world.

2. Interstate organizations of a regional and interregional nature, which are created by states to resolve various issues, including economic and financial

3. International economic organizations operating in certain segments of the world market. In this case, they most often act in the form of commodity organizations, uniting a wide or narrow range of countries.

4. International economic organizations, represented by semi-formal associations like the G7 (USA, Japan, Canada, Germany, France, Great Britain and Italy). The economic “weather” on the entire planet largely depends on the state of the economy of these leaders of the world economy.

5. Various trade, economic, monetary, financial and credit, industry or specialized economic, scientific and technical organizations.

International and regional monetary, credit and financial organizations are institutions created on the basis of interstate agreements for the purpose of regulating international economic, including monetary, credit and financial relations. These organizations include: the Bank for International Settlements, the International Monetary Fund, the International Bank for Reconstruction and Development, and regional development banks.

International monetary, financial and credit organizations are playing an increasingly prominent role in the global economy. Firstly, their activities make it possible to introduce the necessary regulatory principles and a certain stability into the functioning of currency and settlement relations. Secondly, they are intended to serve as a forum for establishing currency and settlement relations between countries, and this function is invariably strengthened. Thirdly, the importance of international monetary, financial and credit organizations is increasing in the field of studying, analyzing and summarizing information on development trends and making recommendations on the most important problems of the world economy.

The World Bank Group is made up of five closely related institutions whose common goal is to provide financial assistance from developed countries to developing countries. This group includes:

1. The International Bank for Reconstruction and Development (IBRD) is the main component of the World Bank group. Founded in 1945 Focuses its efforts on providing loans to relatively wealthy developing countries. This bank is often called the World Bank.

2. International Development Association (IDA). Formed in 1960 Provides especially concessional loans to the poorest developing countries that are unable to take loans from the World Bank. IDA issues up to $5 billion in loans per year.

The International Development Association generally follows the same policy as the IBRD regarding the selection of projects for financing. IDA requirements are more lenient compared to the IBRD requirements and are applied not so much to the country’s debt level, but to the target and effective use provided funds. In addition, a criterion is formally established for the level of GNP per capita at which a country can receive IDA funds: no more than $1,305. (IBRD, on the contrary, has more). However, in practice, IDA loans are available at significantly lower income levels. The borrower can be the government or an organization that has a government guarantee. Most loans and credits are of a “project nature”, i.e. allocated for specific projects.

When distributing funds, IDA gives special priority to fighting poverty, protecting the environment, and supporting macroeconomic and sectoral policies of national states.

The terms of the loans depend on the duration of the financed project, but generally the repayment period for IDA is 35-40 years.

3. International Finance Corporation (IFC). Founded in 1956

It promotes the development of private economic initiatives in developing countries by providing loans on preferential terms together with interested private investors. Unlike the IBRD and IDA, member countries must pay their signed share in full, reflecting the commercial nature of the IFC.

Article 1 of the IFC Charter states that the main goal of the organization is to combine the efforts of international and private capital, the experience of managers to promote private investment in less developed countries ah-members. The need for such a financial institution arose because the IBRD, by its status, provides loans only to governments or requires government guarantees and does not have the right to participate in the authorized capital of private firms. In contrast, IFC participates in the equity capital of private enterprises and also facilitates the sale of shares and debt obligations of such enterprises, and also facilitates the sale of shares and debt obligations of such enterprises by providing guarantees. At the same time, the participation in the financing of private enterprises, along with the IFC, also includes state capital, both in the form of loans and in the form of shares, is not excluded.

Until the mid-1980s. IFC received funds mainly from statutory payments of member countries, IBRD loans and current profits. Since 1985 Refinancing policies in international capital markets are becoming increasingly important. The IFC's source of refinancing is also the sale of participation shares in the equity capital of private enterprises in developing countries, especially since such participation is limited in time. Since 1995, IFC began selling claims on loans to a specially created offshore trust organization, which securitizes (transforms any assets into securities) loans by distributing specially issued certificates to institutional investors and banks.

IFC's financial assistance may take the form of long-term loans, equity, guarantees, or a combination of these. Although IFC does not require government guarantees, it carefully reviews the creditworthiness of the beneficiaries of its funds. In addition, financing risk is reduced through IFC participation, usually in syndicated loans, covering no more than 25% of total costs. Loans provided by the IFC are intended primarily to finance the development of financial services and capital market institutions. Great value They also have loans to the processing industry, automotive industry, chemical industry and tourism.

The financial conditions of IFC loans are more “tough” than those of the IBRD and IDA. The majority of IFC's loans are for terms ranging from 7 to 12 years at fixed or variable rates in a wide variety of currencies.

IFC's participation in the equity capital of private firms is carried out by providing funds in the national currency of the relevant country. Participation shares are sold after the implementation of the investment project. In addition, to increase the interest of private investors, the IFC guarantees the amount of contributions to the authorized capital. IFC invests funds provided by investors in authorized capital, accepting the risk of loss. Dividends and returns on capital are divided between investors and IFC in accordance with the agreement concluded between them. After the end of the agreement, the investor chooses between the options of rewriting the participation share in his name, or abandoning it, and at least the initial capital contribution is returned to him.

4. International Investment Guarantee Agency (MIGA). Created in 1988

The Multilateral Investment Guarantee Agency plays a significant role at the intergovernmental level to stimulate the flow of investment among member countries, especially to developing countries, and is a member of the World Bank Group.

The main function of this Agency is to provide guarantees against non-commercial risks in relation to investments made in one of the member countries. Guarantees are provided by the Agency either independently or jointly with other organizations. Along with the first guarantees of foreign investments, MIGI provides reinsurance of non-commercial risks. The Agency is particularly committed to providing guarantees for investments for which similar coverage on reasonable terms is not available from private insurers or reinsurers.

Non-commercial risks for which MIGA provides guarantees include: restrictions on the transfer of currency: expropriation and similar measures, as a result of which the owner of the guarantee is deprived of ownership of, control over his investment or significant income from such investment; breach of contracts; war or civil unrest.

In addition to deliberate actions in the country receiving investments that lead to losses for foreign investors, MIGA guarantees also apply to cases of inaction by national governments in cases where their intervention was necessary. At the same time, there are various kinds clauses that allow negative consequences in the activities of foreign investors to be interpreted as a consequence of the general economic situation. For example, a foreign investor must prove that its losses arose as a result of the discriminatory policies of the host government, rather than general economic regulation measures.

Guarantees are provided only in case of risks arising in developing countries - members of MIGA. The object of the guarantees is foreign direct investment, including those made through the purchase of shares of companies in the host country. In the form of an assignment, the investor assigns to the agency the rights or claims associated with the guaranteed investment. The agency should also contribute to the removal of barriers to the movement of capital, including the signing of unilateral and multilateral agreements to stimulate foreign direct investment, and the settlement of disputes between investors and host countries.

5. International Center for the Settlement of Investment Disputes (ICSID). Founded in 1966 Promotes the flow of international investment by providing services for arbitration and dispute resolution between governments and foreign investors, conducts consulting, scientific research, and has information on investment legislation in various countries.

It is also possible to classify these organizations from a different point of view.

The two main organizations are the International Bank for Reconstruction and Development and its subsidiary the International Development Association. In addition to the above organizations, the World Bank Group also includes IFC, MIGA, and ICSID as associate members

The main goals of the World Bank Group organizations are:

A) promoting reconstruction and development national economy participating countries;

B) encouraging private and foreign investment through the provision of guarantees and participation in loans and investments of private creditors and other investors;

C) stimulating balanced growth of international trade and maintaining a balanced balance of payments of participating countries.

Coordinated mechanisms for implementing tasks are being developed, which is also ensured by organizational integration, in particular the presence of a common president, Board of Governors and Executive Directorate. The principles for determining quotas, the number of votes, and representation in governing bodies are similar for the World Bank Group and the International Monetary Fund. Their governing boards hold a joint meeting once a year.

However, there are peculiarities in the financing mechanism of WBG organizations, criteria for selecting candidate countries for assistance, and lending conditions. Each organization is legally independent. IFC and MIGA have their own staffs and their own executive vice presidents. Like the IMF, the WBG is structured on a regional-sectoral principle: some vice-presidents head regional departments, the rest are responsible for specific areas of management. At the same time, the regional structure of the WBG is more extensive than that of the IMF. In addition, the WBG organizations have a more representative composition of specialists: in addition to economists and financial experts (as in the IMF), they also employ engineers, agronomists, lawyers, experts in telecommunications and other various industries. Their task is to thoroughly examine the projects for which funds are proposed to be allocated.

Since 1992, Russia has been a member of the IMF and the World Bank.

The Bank for International Settlements (BIS) is the first interstate bank, which was organized in 1930. in Basel as an international bank of central banks. Its organizers were the issuing banks of England, France, Italy, Germany, Belgium, Japan and a group of American banks led by the Morgan banking house.

One of the objectives of the BIS was to facilitate settlements of German reparations payments and war debts, as well as to promote cooperation and settlements between central banks. The BIS still retains its main function as coordinator of central banks of leading developed countries. It brings together the central banks of 30 countries, mainly European. Since 1979, the BIS has been making payments between countries participating in the European Monetary System, acting as the depositary of the European Coal and Steel Community (ECSC), and carrying out transactions on behalf of the OECD and its participating countries.

The BIS carries out deposit and loan, foreign exchange, stock transactions, purchase and sale and storage of gold, and acts as an agent of central banks. As a Western European international bank, the BIS carries out interstate regulation of monetary and credit relations. It is also necessary to say something about the regional monetary organizations of the European Union.

The European Investment Bank (EIB) was created in 1958 with the aim of providing loans for a period of 20 to 25 years for the development of backward areas, the implementation of interstate projects, modernization sectoral structure production.

The European Monetary Cooperation Fund (EMCF) was created in 1973 within the framework of the European Monetary System, and since 1994 - the European Monetary Institute (EMI). It provides loans to cover the balance of payments deficit of EMU member countries, subject to their implementation of economic stabilization programs. Within the framework of the EMU, the EMI is entrusted with the functions of credit and settlement services for member countries.

The European Bank for Reconstruction and Development (EBRD) was established in accordance with the agreement signed on May 29, 1990 in Paris to assist reforms in the countries of Central and Eastern Europe due to the transition of countries in this region to market-oriented economies. The bank's founders are 40 countries: all European countries except Albania, as well as the USA, Canada, Mexico, Venezuela, Morocco, Egypt, Israel, Japan, South Korea, Australia, New Zealand and two international organizations - the European Union and the European Investment Bank. The former USSR also took part in the formation of the bank; the Russian Federation is now a member of the bank.

The EBRD began its activities in April 1991, its capital in the amount of 70 billion francs is distributed as follows: 50% belongs to the Commission of the European Communities and 12% to EU countries; 11.3% - to other European countries; 24% - to non-European countries, including: USA - 10% of capital, Japan - 8.52%, countries of Eastern and Central Europe - 13.7%, the former USSR, and now Russian Federation – 6%.

The EBRD's goal is to play a stimulating and accelerating role in attracting capital to the infrastructure sectors of Central and Eastern Europe. By providing loans, the bank helps Western industrialists take the necessary risks in conquering markets in the East, and this will contribute to the speedy transition of Eastern European countries to economic stability and the introduction of convertibility of their currencies.

1.2. International Monetary Fund (IMF)

The International Monetary Fund is an international organization whose participants are obliged, in accordance with the articles of the Agreement adopted in 1944, to comply with the rules for conducting international transactions and closely cooperate on issues of international currency policy and interstate payment turnover, as well as provide mutual financial assistance to overcome the balance of payments deficit .

The International Monetary Fund is, along with the General Agreement on Tariffs and Trade (GATT) and World Bank, one of the world's leading organizations created after World War II to strengthen international economic cooperation.

The agreement to create the IMF was adopted in July 1944. At the international monetary and financial conference of 45 states in Bretton Woods (USA) and came into force on December 27, 1945. Since then, the IMF has played a leading role among all IFCOs in developing principles for the functioning of the global financial system and monitoring their implementation. The tasks facing him remained basically the same, but the forms and methods of their implementation changed along with the evolution of the world financial system. In addition, the list of Foundation members has expanded significantly, covering almost all countries of the world.

At the first stage, the main tasks of the IMF were:

 elimination of exchange controls, which were practiced by many countries before the Second World War;

 ensuring currency convertibility;

 stabilization of exchange rates in accordance with the basic principle of the Bretton Woods system;

The first two problems in relation to the main world currencies have been largely solved. In particular, convertibility for spot transactions is practically guaranteed. In EU countries, since 1990, freedom of capital flow has been proclaimed. Most developed countries have eliminated or relaxed exchange controls, so the IMF should now promote free trade. However, many developing countries and countries with economies in transition, which include Russia, continue to practice currency controls. The Foundation consults with such members at least once a year.

To date, it has not been possible to find a mechanism to ensure relative stability of exchange rates. In the modern world monetary system, the idea of ​​fixed currency parities has been abandoned, but the problem of preventing sharp jumps in the rates of individual currencies remains relevant, since they lead to disorganization economic relations, significant losses for TNCs.

The number of IMF member countries is constantly growing (182 in 2002). In the 1990s. The CIS countries, as well as Switzerland, which previously adhered to the principle of “constructive non-membership,” joined the IMF.

The governing body of the IMF is the Council of Governors (Managers), in which each of the participating countries has its own representative - mainly the minister responsible for monetary policy in his country, or the president of the issuing bank. The Council of Governors is authorized to resolve critical issues, in particular the admission of new members, the establishment and change of participation quotas, and the provision of additional SDRs to countries. Since 1972 Special committees of the Council of Governors were tasked with monitoring the functioning of the currency system and its further development.

Until 1974, this work was carried out by the Committee of Twenty, named after the number of members, whose main task was a fundamental reform of the international monetary system in connection with the destruction of the Bretton Woods system. Since 1974, current control over the functioning of the world monetary system and its adaptation to changing conditions has been carried out by a new World Committee, which consists of 24 people. Its meetings are held 2 times a year. Formally, the Committee does not have decision-making rights, being an advisory body. But in fact he plays a leading role in the IMF. This committee, if there is a majority vote of the Council of Governors (85%), can be transformed into a new body with powers - the Council at the ministerial level.

There are also two groups: the first includes 8 representatives each from the continents of Africa, Asia and Latin America, which meet before the meetings of the World Committee, in the second - representatives of developed countries. The latter coordinates assistance to Central and Eastern European countries.

The current economic management of the IMF is carried out by the Executive Directorate, consisting of 24 executive directors. Of these, 5 are determined by IMF members with the highest quotas, the rest are chosen every two years by the governors of other participating countries, as a rule, by regional groups. The Executive Directorate is elected for a five-year term by the Managing Director, who is also the supreme supervisor of the IMF's international headquarters.

Each country's share of both the Board of Governors and the Executive Directorate directly depends on the country's financial participation in the IMF. Each member has 250 primary votes and 1 additional vote for every 100,000 country quota units. The last quota is calculated on the basis of such indicators as GNP, the value of gold and foreign exchange reserves, the volume of exports and imports, etc. The main share of votes belongs to the United States (about 20%), as well as the EU countries in total (about 30%). However, in the executive directorate there is a veto rule, which often neutralizes primacy in votes.

Each country is assigned a quota that determines members' payment obligations, borrowing rights, and voting rights. Initially, one fourth of countries' payment obligations were fulfilled in gold, the remainder in the country's currency. In the second edition of the IMF Charter, payments in SDRs took the place of gold. However, the Fund may permit this portion of payments to be made in foreign or the country's own currency. Within the limits of financial payments for its obligations, the country automatically receives the right to borrow in the so-called reserve tranches. It is clear that the reserve tranches do not actually represent lending by the IMF. If the economic role of participating countries increases, their quota increases, which increases their ability to borrow in reserve tranches, as well as the financial potential of the IMF.

Consistent with the cooperative framework, the IMF seeks to provide assistance to finance balance of payments deficits primarily through payments from its members. However, in addition to the latter, the Fund also uses other opportunities to replenish its credit resources:

 mandatory sale by IMF members of their currencies within established limits for the provided SDRs;

 borrowing from IMF members with their consent;

 operations on international financial markets;

 interest payments on previously granted loans and repayment of principal amounts;

 credit lines that are opened by individual countries or groups of countries

Until 1993, there was a credit line that was opened in accordance with an agreement between 10 countries (USA, Germany, Japan, France, etc.) and was initially used only for lending to these countries, and then also to other IMF members. In the 1970s, following two sharp increases in oil prices, the Fund borrowed from oil-producing countries that had positive balances of payments and significant foreign exchange reserves.

Opportunities for raising funds on international financial markets are still practically not used by the fund. A number of its most active members fear that operations in them will make the IMF highly dependent on the development trends of these markets, which are not always favorable.

The Fund's loan portfolio is quite wide and is constantly changing: some types of credit assistance to participating countries cease to exist, while others, on the contrary, are introduced into practice. The last reform of the IMF's lending policy occurred in 2000, following a period of financial crises that affected many developing countries, and also due to the fact that the incidence of defaults and delays in loan repayments increased. As a result of the reform, the number of the Fund's loan programs was reduced, their size was reduced, the expected loan repayment period was reduced, and control over the use of funds was strengthened. The number of regular credit lines from this period became five, and, in addition, a credit line is maintained, under which funds are provided on more lenient terms than usual.

Most types of Fund loans have a number of common features. Firstly, most often its value is linked to the size of the country’s quota in the IMF, although there are exceptions. Secondly, credit is provided in the form of borrowing, in which a country buys foreign currency or SDRs from the IMF with its own. After a specified period, the participating country is obliged to repurchase the national currency in the funds in which the loan was provided. Thirdly, loans are provided subject to the country's acceptance and fulfillment of certain obligations to reform the economy, agreed upon with the Fund (the linked nature of the loans).

The main types of IMF loans are the so-called “Stand-by” loan agreements. Their main purpose is to lend to macroeconomic stabilization programs of participating countries to overcome the balance of payments deficit. Funds purchased by the country under credit lines are provided in tranches. Each subsequent tranche is allocated only if the country fulfills stabilization programs. In the latter, the IMF establishes, in agreement with the participating country, macroeconomic measures, for example, to overcome the budget deficit, reduce inflation, establish or mitigate export and import quotas and duties, etc. If a country does not comply with the terms of the agreement with the IMF, then the next tranche may be delayed or the obligation to overcome it may be canceled.

One of the relatively new types of IMF loans is the provision of funds to replenish the foreign exchange reserves of the country's central bank. These funds serve to prevent sharp exchange rate fluctuations that could lead to large balance of payments deficits.

Comprehensive financing lines are opening for countries exporting raw materials and importing grains. In the first case, temporary losses arising from countries whose foreign exchange earnings are highly dependent on the situation in world export prices are compensated; in the second, additional costs associated with increased grain import prices are compensated. The interest accrued on these loans depends on the source of funds, the purpose of the loan and the borrower. In addition, the IMF charges borrowing countries a fee of 0.5% of the loan amount to cover organizational costs.

For countries that have low per capita income and experience big problems with the balance of payments, the IMF provides loans to fight poverty and promote economic growth. The interest rate on them usually does not exceed 0.5% per annum. Before loans are provided, the borrowing country, the IMF and the World Bank jointly develop a medium-term economic development framework that serves as the basis for a structural adjustment program specified in annual agreements between the parties. Unlike stabilization programs for credit tranches, the “framework” plan for economic development is less rigid; in particular, as a rule, target values ​​for the level of inflation, public debt, etc. are not set.

To ease the financial burden for developing countries when receiving credit tranches and special lines (actually on market conditions), the IMF can provide interest subsidies from a special account, sometimes reaching half the loan rate. Funds in this account come primarily from payments on Trust Fund loans, as well as donations from a number of countries. Since the IMF is generally committed to the principles of equal service to its members, interest subsidies are an exception.

When deciding on the provision of credit tranches and special lines, the impact on the country’s balance of payments of a number of significant quantities is examined, for example, such as import and export prices of the most important goods, interest rates on international financial markets, etc. If they change unfavorably and this is reflected in the payment balance sheet of the country, then, based on the conclusion of the Fund’s experts, a decision can be made to provide a loan. If the trends in changes in the studied quantities are more favorable than expected, then the country is obliged to increase its foreign exchange reserves or reduce funds borrowed from the IMF.

Due to the fact that a number of countries do not comply with their payment obligations, the IMF has opened insurance accounts. Funds for them come mainly from interest on IMF loans, as well as from contributions from debtor and creditor countries. Every year, the IMF's insurance reserves increase by 5%.

The Fund's funds began to be used to a significant extent only in the mid-1970s. Previously, their volume was insufficient to finance the significant deficits in the balance of payments of many countries. In addition, after the end of World War II, aid provided under the Marshall Plan played a significant role.

Since 1974, when the first oil crisis broke out, borrowing from the IMF has increased sharply, amounting to . more than 19 billion SDR. Their next surge (SDR 4,305 billion) occurred in 1980-1984. and caused by the second oil crisis. Many countries during this period of time switched from international financial markets to the IMF, despite the fact that loans from private financial institutions are free from the countries taking on political and economic obligations. However, the financial costs of international loans were exorbitant for these countries.

The third peak in the activity of the borrowing policy occurred in the period from 1989. By the same time, reverse payments by debtor countries on previously taken loans also increased sharply. It should be noted that the monetary nature of IMF assistance causes a constantly repeating process of circulation of funds, so that periods with increased borrowing activity are followed by periods of a reverse flow of funds from the Fund's debtors.

During the years of the global financial crisis (1997-1998), which particularly hit Russia and the countries of East and South-East Asia, the volume of borrowing from the IMF again increased sharply. However, as experience has shown, many countries did not fulfill their obligations. This led to criticism of the IMF and a tightening of lending policies.

The International Monetary Fund considers one of its main tasks not so much to provide own funds how to improve the image of borrowing countries by providing them with loans (the role of a catalyst). This makes these countries more attractive to other lenders.

1.3. International Bank for Reconstruction and Development (IBRD)

A member of the International Bank for Reconstruction and Development can only be a state that is also a member of the IMF and thus assumes the obligations arising from this. Membership in the IBRD is in turn a prerequisite for membership in other organizations of the World Bank Group. In accordance with Article 1 of the IBRD Charter, it was created in connection with great need in the financial means of member countries for revival and economic development. At first, IBRD funds were used to revive European countries within the framework of the American program (“European Recovery Program”), based on the Marshall Plan. Since the 1950s The IBRD turned to economic assistance to developing countries.

When the bank was founded, financial resources were obtained from contributions from its members and are replenished from this source when new members join. However, the authorized capital played a key role in financing the bank's programs only at the first stage. The IBRD currently obtains fixed assets through operations in international financial markets through the issuance of medium- and long-term debt instruments with the highest credit ratings, as well as through private placement of funds from governments, central banks and other creditors at fixed interest rates. IBRD places its securities in more than 100 countries and is the largest borrower in global capital markets, as well as one of the largest non-resident borrowers in national markets.

Unlike the IMF, the IBRD borrows funds not only from governments, but also from private organizations, and at a significantly higher rate. large sizes. Recently, funds from the repayment of previously granted loans and interest on them have become increasingly important. From time to time, the IBRD also sells guaranteed claims on loans provided by the bank to investors who are looking for secure investment opportunities.

Since 1982, the IBRD, in addition to traditional medium- and long-term loans, began to attract funds in the money markets, in particular through the distribution of short-term discount notes and notes with floating interest rates and taking short-term loans from issuing banks within the framework of credit lines opened by them. Even more than short-term loans, the IBRD's refinancing policy since the 1980s. began to define currency swaps, which allowed him to reduce financial costs by using currencies with lower interest rates. At the same time, borrowing countries also benefited by receiving loans on more favorable terms. However, they are exposed to higher exchange rate risk due to the fact that low-interest currencies have an increased value relative to the dollar. In this regard, the IBRD moved in 1989 to a more weighted currency basket of its pool in order to reduce the exchange rate risk of borrowers, despite a slight increase in the average interest rate.

Thanks to careful selection of projects, borrowing countries and control over the use of funds, the IBRD does not experience permanent losses due to the cessation of principal and interest payments. However, there are still delays in the repayment of loans in a number of countries, such as Nicaragua, Peru, Liberia and some others. For problem loans, the IBRD creates special reserve funds. In the interests of creditor countries, the IBRD does not, in principle, participate in actions to restructure the debts of countries experiencing serious problems with the balance of payments.

They have essentially the same policies regarding the selection of projects for financing, providing loans and credits only to projects that are economically and technically sound and have a high priority for the economic development of the debtor countries.

There are significant differences in the conditions for selecting recipient countries, as well as the loans themselves. The IBRD provides funds, as a rule, not in the national currency of the debtor country, but in mottos (internationally pegged means of payment). In accordance with the IBRD Charter, the solvency of debtor countries must be sufficiently high, therefore, first of all, the size and structure of its international debts are checked. If a developing country is not prosperous in this regard, then it cannot be an IBRD borrower.

The borrower can be the government or an organization that has a government guarantee. Most IBRD loans and credits are of a “project nature”, i.e. are allocated for specific revival and development projects, except in specially specified cases.

World Bank specialists classify their loans as follows.

Special investment loans. They are provided to finance a specific facility for the purpose of constructing new production facilities, expanding production at existing production facilities, or improving their maintenance. In fact, it is loans of this kind that are classified as project loans, and they still dominate the total volume of loans (about 50%).

Sectoral operations. Under this name, various loans are combined that are provided to finance projects within target sectors of the economy, such as transport, energy, agriculture, etc. The determination of financed objects within the target sectors is carried out by the governments of the borrowing countries according to criteria established by the World Bank. Loans are made either directly to the government or to organizations that are designated by the government and essentially act as intermediaries between it and the final borrower, such as national development finance societies or agricultural funds. Sectoral operations also include sectoral structural adjustment loans designed to solve general problems within the boundaries of target sectors that may arise, for example, when economic policy changes. Often the proceeds from these loans are used to finance import operations.

Structural reorganization loans (budget-replacing rehabilitation loans). They have been introduced since 1980 as assistance to countries experiencing problems with the balance of payments, and provide for a wide range of activities of the national government. The criteria for the allocation of such loans are the most lenient and consist of the country presenting a structural adjustment program agreed with the World Bank and having prospects for success. These types of loans are akin to similar IMF financing of measures to overcome the balance of payments deficit, therefore specified organizations agree on the scope, terms, and conditions of lending.

The IBRD also provides loans to overcome the consequences of disasters, such as earthquakes or droughts, but their importance is still small (about 1% of all allocated funds).

The terms of loans depend on the duration of the financed project, but generally the repayment period for the IBRD is 12-15 years.

Funds provided by the World Bank in foreign currency must, in principle, be repaid in the same means of payment. If the costs of programs and projects implemented by national governments arise in the national currency, then they must be reimbursed from their own funds, so that the governments themselves bear the currency risks. If, however, in a given country, due to the underdevelopment of the national currency market, there is not a sufficient number of international means of payment, then the government must purchase them on international financial markets.

Since the IBRD itself provides loans from borrowed funds, interest rates depend on general trends in their movement in international capital and money markets.

For a long time, the IBRD used calculation formulas to determine interest rates. However, they did not take into account a number of new phenomena of the late 1970s - early 1980s, large fluctuations in rates on international markets; transition to the use of floating interest rates in international lending; increasing the period of time between loan promises and the actual start of providing loans, etc. In connection with this, the IBRD moved from 1982. To the use of floating interest rates, reviewed every six months. The initial interest rate is based on the bank's own acquisition costs. A margin of 0.5% is then added to the weighted average cost of capital. In fact, the interest rate, taking into account the bank's margin, is about 6-7% per annum. While most IBRD loans have rates comparable to market rates, IMF loan tranches, on the contrary, are cheaper than market rates. The IBRD, like the IMF, charges a commitment fee, % per annum, on the unspent loan amount.

Before providing loans, the IBRD analyzes the overall economic condition of the borrowing country, primarily the balance of payments, development plans and investment policies. Next, the economic, technical and institutional aspects of the project are analyzed in terms of its feasibility and cost-effectiveness. Once the project analysis is completed, the IBRD loan agreement sets out specific conditions that must be met by the parties. In addition, the agreement includes general provisions World Bank, which, however, may be adjusted. During the implementation of the project, the World Bank sends commissions to check the progress of its implementation. Approximately one year after the final disbursement of funds for any project, the World Bank prepares a report summarizing the current results.

Chapter II. Lending to the IMF and World Bank in Russia

2.1. Russia and the IMF. Collaboration Analysis

Russia's integration into the world economy suggests its participation in interstate financial institutions. In the conditions of increased interdependence of the world, the country could not, without damaging its interests, remain aloof from participating in international monetary and financial organizations.

In 1985 a course was set for the gradual accession of the SSSO to the IMF and the World Bank. However, the obstacle was the reluctance of the West to agree to full-scale membership of the USSR in these organizations. After the collapse of the USSR, the states that were part of it took the path of individual entry into the Bretton Woods institutions. Russia submitted an application to join the IMF and the World Bank on January 7, 1992.

On April 27, 1992, the IMF Board of Governors voted to admit Russia and thirteen other former Soviet republics. After the signing of the Articles of Agreement (charter) of the IMF on June 1, 1992, the constituent documents of the IBRD on June 16, 1992. and the IFC on April 12, 1993, by Russian representatives, Russia officially became a member of these organizations.

In terms of quota size (SDR 5.9 billion, or $8.3 billion), Russia ranks ninth after Canada. Such a quota does not give Russia the right to a permanent seat on the Executive Council. However, with 43,381 votes, she single-handedly elects her own executive director.

Russia's responsibilities as a member of the IMF. Firstly, the elimination of currency restrictions, maintaining the convertibility of national currencies for current international transactions, and non-participation in discriminatory currency agreements.

Secondly, do not resort to multiple exchange rates. Since July 1992, there has been a single official ruble exchange rate.

Thirdly, the country’s information openness, provision of statistical data to the Fund about its economy, balance of payments, gold and foreign exchange reserves, admission of IMF representatives to its territory to study the state of the economy and the nature of macroeconomic policy. Allows you to resort to the services of highly qualified experts of the Foundation and use their experience.

Membership in the IMF allows Russia to use loans in freely convertible currency to financially support economic reforms and cover the balance of payments deficit.

On April 1, 1992, the first international assistance program for Russia was announced ($24 billion) with the support of the IMF. It was intended to establish a stabilization fund for the Russian ruble ($6 billion) to maintain its exchange rate and convertibility through interventions in the Russian foreign exchange market. The IMF was supposed to provide Russia with a reserve loan ($3 billion) to cover the balance of payments deficit.

August 5, 1992 The IMF provided Russia with the first credit share as part of a stand-by loan, for which the Fund requires the borrowing country to fulfill relatively mild conditions. The credit line was opened in the amount of SDR 719 million ($1.04 billion) at 7.5% per annum with a maturity of five months. These funds were used to replenish foreign exchange reserves and intervene in the foreign exchange market. Subsequent tranches of the Russian reserve loan in 1992. I didn't receive it. The most important parameters controlled by the IMF—the budget deficit and inflation in Russia—did not meet its standard requirements. Thus, the most valuable component of the bailout package - untied foreign exchange funds that the authorities could use to carry out economic reforms and macroeconomic adjustments - remained unrealized.

The second package of assistance to Russia ($43.4 billion) was adopted at the G7 meeting (Tokyo, April 1993). Provided for a loan for “priority stabilization measures” in the amount of $4.1 billion, including $3 billion under the IMF’s facility for financing systemic transformations in countries with economies in transition, conditional on meeting more moderate requirements than for a standard loan. The procedure for granting a loan was simplified. The first half of this loan ($1.5 billion) was provided to Russia in July 1993. However, the second half of this loan was not received in 1993, since the IMF was not satisfied with the results of the financial stabilization carried out in Russia. The Foundation provided it only on April 25, 1994.

It was planned to implement a “full stabilization program” using the IMF reserve loan ($4.1 billion) and the ruble stabilization fund (6 billion), a total of $10.1 billion. Both positions were contained in the 1992 aid package, but were not implemented. The reserve loan was partially intended to be used for the redemption of debt obligations of the former USSR in relation to foreign private commercial banks on the secondary market. However, since Russia was again unable to fulfill the strict conditions of IMF loans, their provision was again delayed.

After the currency shocks in the fall of 1994, which culminated in the famous “Black Tuesday” (October 11), the Russian leadership set a course for tightening financial and monetary policies, suppressing inflation as the main macroeconomic goal. Such a change of milestones was supported by the IMF. The result was the provision to Russia on April 11, 19995. the first standard full-scale stand-by loan in the amount of the country’s quota in the IMF, i.e. $6.8 billion, for 12 months. The authorities used this loan, on the one hand, to replenish gold and foreign exchange reserves and pay off external debt, and on the other, to finance the state budget deficit.

The IMF generally expressed satisfaction with the results of the Russian financial stabilization program in 1995. But at the same time, critical remarks were made regarding structural reforms (privatization, modernization of the banking sector, land reform). Nevertheless, on March 26, 1996, the Fund provided Russia with a new loan - this time through the extended financing mechanism. This loan ($10.1 billion) was to be used within three years. The loan amount corresponded to 160% of the Russian quota; however, it was assumed that the provision of funds would be uneven: in the first year - 65% of the quota, in the second - 55%, in the third - 40%. During the first year of the credit line, currency was received in the form of monthly tranches, and in the next two years, quarterly tranches.

Russia's receipt of a large-scale IMF loan allowed it to reach an agreement in 1996 with creditor states within the framework of the Paris and London Clubs on a long-term (25 years) restructuring of the external debt of the former USSR, the responsibility for servicing and repaying which it assumed.

The IMF was not satisfied with Russia's implementation of the 1997-1998 stabilization program. In this regard, the transfer of the next tranches began to be postponed. The Foundation was particularly dissatisfied with the state of the state budget.

In 1997, the economic situation in Russia deteriorated sharply due to the fall in prices on world markets for energy resources, primarily oil and gas, as well as for raw materials. The balance of payments (current transactions) turned in the first half of 1998 from active, as it had been in previous years, to passive with a state budget deficit of over $6 billion. The global financial crisis dealt a heavy blow to the Russian economy. It led to foreigners dumping Russian securities and converting the proceeds in rubles into foreign currency. This, on the one hand, contributed to a fall in demand for GKOs and OFZs and, accordingly, to an increase in their profitability, and on the other hand, to a depreciation of the ruble. Governments developed an anti-crisis program and asked the IMF and other official creditors to provide urgent, large-scale financial assistance. The West promised to provide assistance, the volume of which during 1998-1999. in total should have reached $22.6 billion.

The bulk of the financial support package for Russia comes from IMF loans ($11.2 billion in 1998 and 0.4 billion in 1999, a total of 11.6 billion). This amount was divided into the following three parts: an addition ($3.4 billion) to the loan provided since 1996 under the Extended Financing Facility; a loan ($5.3 billion) using the additional reserve financing mechanism created in December 1997 (on more stringent terms than usual); a loan under the Compensatory and Emergency Financing Facility ($2.9 billion), which was supposed to compensate for the decline in export earnings associated with the fall in oil prices. Together with the unused part of the loan from 1996-1998. the total amount of credit support from the Russia Fund would have amounted to $12.5 billion in 1998, and in 1998-1999. – $15.1 billion. In addition, the Russian government intended to agree with the IMF on a new credit line for extended financing in 1999-2001. ($2.6 billion per year), i.e. in the end, about $8 billion. Funds to finance additional assistance to Russia in 1998 within the framework of the extended financing mechanisms and additional reserve financing (about $8.3 billion) were to come from the General Agreements on Borrowings, i.e. from 11 leading Western countries.

In connection with the decisions of the Russian authorities on August 17, 1998 (declaring a default on domestic public debt, establishing a 90-day moratorium on payments on external obligations of commercial banks and devaluing the ruble), the credit package to help Russia was frozen, and the existing agreements became invalid. The fate of Russia's future relations with the IMF and the World Bank has become the subject of difficult negotiations.

In general, for 1992-1998. The IMF approved five agreements to provide loans to Russia in the amount of $30-32 billion. In fact, by the end of 1998, $20-21 billion were used. In addition, Russia has completely used up its reserve position in the IMF in the amount of SDR 926 million (ninth quota revision), or $1.3 billion (21.47% of the quota). Russia's debt to the IMF at the end of 1998 amounted to SDR 13.7 billion, or $19.3 billion, i.e. 318.4% of its quota in the Fund (in accordance with the ninth revision of quotas). At the end of 1998, Russia was the largest borrower of the IMF: it accounted for 20.56% of the total amount used by member countries of the Fund's resources.

IMF loans are conditional on the fulfillment of a number of political and economic conditions, which are contained in macroeconomic stabilization and structural reform programs developed jointly with the Fund. In many cases, countries are forced to pay a high social price for Fund loans. Since IMF loans to Russia are in some cases an integral part of international assistance packages, the Fund, in formulating its demands, practically acts as a conductor of the policies of the West, primarily the G7 countries.

Having agreed on the terms of the loan with the borrowing country, the IMF, as it were, certifies its creditworthiness and solvency. This opens up access to interstate credit and private loans and investments, and also creates more favorable conditions for negotiations with creditors regarding the re-registration and refinancing of external debt.

The basis for providing Russia with the first tranche of the loan ($1 billion) was an agreement between the Russian government and the IMF reached on July 5, 1992. This agreement provided for the reduction of the budget deficit to 5% of GDP, the credit issue of the Central Bank of the Russian Federation in the second half of 1992 to 700 billion rubles, reducing the inflation rate to less than 10% per month by the end of 1992. Consequently, this agreement was based on the traditional IMF monetarist model of macroeconomic stabilization. However, in the context of a deep economic recession, it turned out to be unsuitable.

The IMF refused to provide Russia with a reserve loan ($3 billion) in 1993 under the pretext that the policies of the Russian authorities led to the breakdown of the agreement reached. The inflation rate increased to 30% per month in early 1993. GDP volume decreased. The Russian state budget deficit, instead of the planned level of 5% of GDP, turned out to be twice as high, according to some estimates, reaching 20%. The IMF saw the main reason for the rise in inflation in the expansion of loans from the Central Bank of the Russian Federation by 20% monthly.

In an effort to ensure the implementation of the Tokyo foreign aid package, the government and the Central Bank of the Russian Federation adopted a joint statement on economic policy in 1993. The new economic concept of the Russian authorities basically repeated the program of the previous year. It contained typical (albeit somewhat relaxed) targets for the IMF requirements: a reduction in the monthly inflation rate to 7-9% by the end of the year; reducing the state budget deficit by half - to 10% of GDP; tightening of monetary policy, which implied, in particular, bringing the refinancing rate of the Central Bank of the Russian Federation in line with market trends; continued liberalization of foreign exchange and foreign trade operations, including the refusal to maintain the ruble exchange rate and the extension of the convertibility of the ruble for current transactions to foreigners; expanding the scale of privatization and strengthening the role of the market mechanism for the distribution of financial resources. Based on this stabilization program, the first tranche of the IMF loan was received under the systemic transformation financing mechanism ($1.5 billion). The freezing of the second half of this loan at the end of 1993 was caused by dissatisfaction of the IMF management with the progress of implementation Russian authorities their promises, as well as the results of the parliamentary elections in December 1993 and changes in the composition of the government.

The new agreement, recorded in April 1994 by a joint Memorandum of the government and the Central Bank of the Russian Federation on economic policy in 1994, provided for: a reduction in monthly inflation rates to 3-5% (the IMF was ready to be satisfied with 7%); limiting the budget deficit relative to GDP to a single digit; implementation of measures to improve the efficiency of the tax system and mobilize revenues to the budget; liberalization of foreign trade and foreign exchange turnover, elimination of non-tariff measures to regulate exports; speeding up the privatization of property. The new agreement with the IMF allowed Russia to receive the second half of the loan to support systemic change, and also paved the way for receiving the promised stand-by loan.

The economic programs, the implementation of which was conditioned by the provision of a stand-by loan in 1995 and a loan under the extended financing mechanism in 1996-1998, are characterized by tightening financial and monetary policies and detailing of macroeconomic indicators. In 1995, it was planned to reduce the federal budget deficit to 6% of GDP compared to 11% in the previous year, i.e. almost doubled, bringing it to 4% in 1996 and 2% in 1998.

As for monetary policy, its key element was the complete cessation of financing the budget deficit from 1995 through direct, preferential loans from the Central Bank of the Russian Federation, curbing the rate of expansion of credit and money supply, and reducing inflation by the end of 1996 to the average monthly level at 1%, and in 1998 – up to 6.9% on an annual basis.

The programs agreed upon by the Russian Government and the IMF provided for the acceleration of structural changes in the economy. These include: speeding up privatization while providing foreign investors with equal opportunities to participate in this process as national entrepreneurs; elimination of administrative controls over prices and profits, with the exception of a few natural monopolies; promoting sectoral and technological restructuring of industry; radicalization of land and agricultural reform, removal of restrictions on the purchase and sale of land; strengthening the banking sector - increasing the level of liquidity of banks, improving the payment system, increasing the efficiency of supervision by the Central Bank of the Russian Federation over commercial banks; taking measures to reduce mutual non-payments between enterprises without credit injections from the government and the Central Bank of the Russian Federation; securitization of enterprise debts through the introduction of new financial instruments, primarily standardized bills; creation of a more effective legal and organizational basis for the functioning of the securities market.

Programs 1995-1996 contained provisions aimed at completing the process of liberalization of foreign economic activity. Russia has committed itself to eliminating foreign trade benefits and the final elimination of quantitative restrictions on exports and imports. The institution of special exporters of strategic goods, including oil and gas, was eliminated, and the associated losses for the budget were compensated by increasing excise taxes. It was intended to reduce customs duties on imports. Under the 1996 agreement, the government pledged to refrain from quantitative restrictions on the import of alcohol and provision of benefits in the payment of import duties on materials for funds mass media. Mandatory pre-customs examination of exported goods was abolished.

Russia's economic policy program in 1998-1999, which was supposed to be implemented with the assistance of additional financial assistance from the IMF and the World Bank, was aimed at countering the growing financial and currency crisis in the country. Particular emphasis was placed on tightening financial discipline, reducing the federal budget deficit from the planned 5.6% of GDP in 1998 to 2.8% in 1999. To ensure this, it was planned to rebuild tax system, improve tax collection, which should have led to an increase in budget revenues. In order to ease pressure on the GKO market, the government proposed voluntarily exchanging them for Eurobonds denominated in convertible currencies with longer maturities based on market interest rates. All this was intended to reduce inflation. Structural measures are aimed at solving the problem of non-payments, promoting the development of the private sector, and strengthening the banking system.

The implementation of the anti-crisis program was disrupted by the monetary and financial crisis and government decisions on August 17, 1998. These events became a sensitive blow to the prestige of the IMF.

The crisis situation forces Russia to turn to the IMF for loans. However, as long as these states are dependent on the Fund's loans, its influence continues to be a significant factor in shaping their economic and social policies.

2.2. Russia and IBRD. Collaboration Analysis

Russia's quota in the IBRD approximately corresponds to its quota in the IMF. As of June 30, 1998, Russia owned 44,795 shares of the Bank worth $5.4 billion (2.9% of IBRD capital).

According to M. Carter, IBRD Director for Russia, permanent representative in Moscow, the purpose of the Bank’s loans to Russia is “to help in the fastest possible transition to market financing by expanding the role of the private sector, strengthening through legal, institutional and financial reforms public sector institutions, as well as assistance in attracting private investment into the Russian economy.”

The procedure for working with projects financed in Russia by the World Bank is regulated by Decree of the Government of the Russian Federation No. 395 of April 3, 1996. The volume and priorities of borrowings of the Russian Federation in the World Bank, which is developed by the Ministry of Economy and the Ministry of Finance on the basis of the Federal Investment Program and the medium-term program of economic reforms and development Russian economy.

Projects to support structural transformations are initiated by the Ministry of Economy and the Ministry of Finance, and investment projects are initiated by federal executive authorities and executive authorities of constituent entities of the Russian Federation by submitting an application to the Ministry of Economy. The application contains a project concept, which includes an assessment of the expected effect of the project for the development of the country's economy, the structure of the project, a preliminary financial plan for spending and repaying the loan.

The Russian authorities intended to use IBRD loans in four areas: vital imports; structural transformations; investment projects; strengthening the institutional framework of the financial infrastructure. Several years pass from the moment the loan is issued until the actual lending of the property begins. The Bank conducts thorough pre-investment studies, inspections and audits of proposed projects.

As part of the first international assistance program for Russia, a WB loan in the amount of $1.5 billion was provided. In 1992, Russia signed the first three agreements with the WB to allocate $803 million. The first agreement, dated November 16, 1992, provided for the provision of a rehabilitation loan ( $600 million) to pay for imports of vital goods and cover costs associated with economic restructuring. Of this amount, $250 million were allocated to maintain the foreign exchange market and the ruble exchange rate (these funds were transferred to correspondent accounts of the Central Bank of the Russian Federation in foreign banks and were subject to sale for rubles on the Russian foreign exchange market), 150 million - for agriculture, 100 million – healthcare, 50 million – transport, 50 million dollars – the coal industry. This loan cannot be used to purchase weapons, precious metals, tobacco products and other goods that are not essential items.

The second WB loan ($70 million) was intended for social protection citizens during the transition to a market economy (creation of labor exchanges, issuance of unemployment benefits, etc.). The third loan ($90 million) was provided by the WB jointly with a number of Western European banks and the EBRD ($43 million) for the purchase of equipment and expert assistance on privatization. The terms of the loans were the same: 7.6% per annum; term 15 years, including a grace period of five years. However, in 1992, foreign currency loans from the World Bank of Russia were not actually provided.

The Tokyo package of financial assistance to Russia in 1993 provided for the opening by the Bank of credit lines in the amount of $5 billion, including $1.1 billion in rehabilitation loans as part of “priority stabilization measures”; 3.4 billion and 0.5 billion dollars - for structural restructuring of the economy. In August 1993, Russia was granted an oil rehabilitation loan to restore the oil industry and support reforms in the energy sector ($610 million at 7.75% per annum). This is the largest loan for such purposes in the history of the World Bank. In 1994 financial year provided: second oil rehabilitation loan ($500 million); for the development of agriculture (320 million); for privatization ($200 million). The IBRD agreed to participate in lending to transport ($300 million) and financial institutions ($200 million). The implementation of these loans was fraught with difficulties, since the World Bank was not completely satisfied with the investment climate in Russia (disorderly tax regime, subsidy system, control over prices for oil and petroleum products, etc.). therefore, in 1993, Russia was able to actually use loans from the World Bank, as well as from the EBRD, in the amount of only $0.5 billion.

In the mid-90s, the World Bank intensified its interaction with Russia. The main focus is on the energy, financial, social and agricultural sectors of the Russian economy, as well as on the Bank's assistance in the transition to a market economy.

The largest loans from the World Bank of Russia in the 1995-1998 financial years were the second rehabilitation loan ($600 million, 1995); loan for housing project (400 million 1995); two loans for the restructuring of the coal industry (500 million in 1996 and 800 million in 1998); three loans for economic restructuring (600 million, 1997; $800 million and $1,500 million, 1998); loan for restructuring the social protection system ($800 million, 1997).

From the moment Russia joined the WB in 1992 to August 1998, the Bank provided it with 41 loans in the amount of $11.4 billion; $5.7 billion were actually used, or 61.7% of $9.2 billion ., allocated as of June 30, 1998. Russia, which accounted for 5.31% of the debt of all WB member countries, was the seventh debtor of the bank.

Russia borrowed from the World Bank on currency pool terms (i.e. in several currencies) at a rate of 6.54% per annum to 8.37% (the rate is revised every 6 months). Single-currency loans are provided at the LIBOR rate plus a contractual margin of 0.5% (from July 3331, 1998 - 0.75%).

The World Bank usually links the provision of loans to the borrowing country's fulfillment of the same conditions set by the IMF. However, the Fund focuses on measures designed to ensure macroeconomic and financial stabilization, the Bank - on the details of structural reforms (opening natural monopolies to competition; developing privatization; establishing private ownership of land; improving tax regulation, tax collection; reforming banks).

Almost 40% of loans were loans of a macroeconomic nature and, therefore, replenishing state budget revenues (rehabilitation loans for structural restructuring of the economy). They are similar in purpose to IMF loans. Russia's large borrowings are due to the crisis state of the economy. 20% of WB investment loans were directed to the energy sector (mainly the oil and coal industries) and 20% to the social sphere. The WB played an important role in the formation international fund promoting the privatization and reorganization of state-owned enterprises in Russia, the decision to establish which was made at the G7 meeting in Tokyo in July 1993. 1/3 of the planned amount (1 billion out of 3 billion dollars) was to be loans from the WB, IFC and EBRD large privatized enterprises and $500 million in World Bank assistance to Russian regions.

In June 1997, the World Bank approved a new strategy for assistance to Russia, which included increased lending to support economic transformation. There have been positive changes in the implementation of IBRD projects in Russia: the share of projects with a satisfactory implementation rating increased from 39 to 65%, the volume of funds spent on investment projects tripled - from $294 million in January 1966 to 1027 million in March 1997.

The World Bank provided Russia with new structural investment loans. Thus, on December 18, 1997, two loans of $800 million each were approved: one for structural restructuring of the economy, restructuring natural monopolies in the electric power industry, gas industry and railway transport; the second - to transform coal mining - liquidation of the Rosugol company, privatization of viable coal mines.

As part of the extraordinary assistance package of $22.6 billion agreed upon by Russia with the IMF, the World Bank and the Japanese government in July 1998, the World Bank on August 7, 1998 approved the provision of a third loan to Russia for the purpose of structural adjustment from the World Bank to Russia. $300 million of this amount were transferred immediately, the remaining funds were planned to be sent in two portions (500 and 700 million) over the next 18 months. It was assumed that by the end of 1998 Russia would receive $1.7 billion from the World Bank and $4.3 billion in 1999.

The measures taken by the Russian government on August 17, 1998, the declaration of default due to a number of internal and external circumstances, led to the freezing of loans approved by the World Bank. Nevertheless, on February 26, 1999, an agreement was signed to provide Russia with a new investment loan ($400 million) for the construction and repair of highways. However, the implementation of approved budget-replacement loans for structural restructuring of the economy depends on Russia reaching an agreement with the IMF.

2.3. Russia's relations with the IMF and IBRD in 2004-2005.

In modern conditions, Russia continues to cooperate with international credit organizations. There are positive trends. Thus, in relations with the IMF, the Russian Federation is gradually moving from the category of a debtor to the category of a creditor country.

To continue cooperation, Russia must continue to implement reforms in accordance with the terms of the IMF. The government's long-term reform program has been disappointing, although overall well thought out. This was stated in the final statement of the International Monetary Fund mission to Russia in 2005.

With the exception of the banking sector, most of the reforms announced as priorities after the change of government in 2004 are behind schedule, and some are on hold. In this regard, it is of concern that the opposition the government has encountered in implementing reforms related to social benefits may have weakened the resolve to continue the process of implementing other key reforms in the education and health sectors. The challenge of redoubling efforts to implement reforms that will lead to sustained wage increases is pressing as it becomes increasingly difficult to resist growing political and social pressure to use oil revenues to raise wages, the IMF says. Consistent increases in wages and pensions are only possible through policies aimed at accelerating economic growth in the medium term. Weakening structural reforms poses a threat to Russia's growth potential and its macroeconomic stability.

In addition, experts at the IMF mission for Russia believe that the Russian Federation risks missing out on the opportunity to accelerate economic growth in the long term, and it may have to carry out a painful and prolonged tightening of fiscal policy in the event of a significant decline in oil prices.

According to IMF experts, despite the existing reserve for easing fiscal policy in the event of weakening inflationary pressure, the fact that the increase in budget expenditures is used primarily to finance salaries and pensions in the public sector indicates that additional revenues from oil sales are not accumulated for financing reforms that could contribute to potential GDP growth.

The Russian economy, after a 6-7 year period of stable GDP growth with a relatively low level of investment, is faced with restrictions on the supply side and local labor markets. The slowdown in GDP growth was clearly evident from mid-2004, when the growth of oil production began to noticeably slow down due to the fragmentation of the Yukos Oil Company and restrictions on the supply side in the field of oil production and transportation. Also, the fund’s experts note that “the Yukos oil company case also had a detrimental impact on the investment climate, since since mid-2004. investment growth began to slow down. The Russian government needs to give priority to those reforms that will improve the investment climate.

This has become especially important now that, justifiably or not, the Yukos case has raised the question of the threat of state intervention in the economy and ill-considered actions on the part of regulatory and law enforcement agencies.

As for GDP growth in 2005, IMF experts estimated it at 5.5%, which is significantly lower than the figure for 2004, when Russia's GDP grew by 7.1%. GDP growth is likely to remain subdued. The main reason for the slowdown in economic growth, according to IMF experts, is that the growth rate of oil production, as well as the growth rate of investment, will not recover to the level observed in recent years. Moreover, consumption growth will remain steady.

According to the fund's experts, in these conditions, achieving even a slight reduction in inflation will require changes in monetary and exchange rate policies. It should be recognized that the forecasts are subject to considerable uncertainty, particularly with regard to the investment climate and the presence of production capacity constraints in the economy.

The Government of the Russian Federation should accelerate the process of reforming the civil service, administrative and judicial systems and take measures to ensure fair and impartial application of laws and regulations. Carrying out the reform of OJSC Gazprom and other natural monopolies, and especially the immediate resolution of problems impeding Russia's accession to the WTO, will also help strengthen investor confidence. It was noted that global economic growth indicators are “healthy”, despite continued instability in oil markets.

The total volume of payments from the Russian Federation to the IMF in 2004. amounted to about $1.7 billion (SDR 1.2 billion). As of January 1, 2004 Russia's debt to the fund was about $5.1 billion. In January 2005. Russia made the first payment in the amount of 48 million 369 thousand 578.01 euros (41.7 million SDR) to repay the debt to the IMF, then according to the schedule to pay about 1.39 billion dollars (912.883 million SDR), including the principal debt - $1.3 billion (SDR 850.78 million) and its servicing - $94.5 million (SDR 62.10 million). According to the original payment schedule, Russia will repay its debt to the IMF in 2008. However, earlier the Russian Ministry of Finance spoke about the possibility of early repayment of debt to the fund.

The reduction in debt on external debt obligations amounted to a total of 168.46 billion rubles ($6,019.5 million), of which: - repayment of the principal amount of debt on debt obligations of the Russian Federation, expressed in securities specified in foreign currency, amounted to 23 .03 billion rubles (831.4 million dollars); — repayment of the principal amount of debt to international financial organizations - 104.02 billion rubles ($3,705.0 million), including: for IMF loans -98.09 billion rubles ($3,490.7 million), for loans IBRD -5.52 billion rubles ($199.6 million); — repayment of the principal amount of debt on loans received by Russia from foreign governments amounted to 41.41 billion rubles ($1,483.1 million).

On July 28, 2005, the Government of the Russian Federation approved a draft agreement to attract a loan from the International Bank for Reconstruction and Development (IBRD) in the amount of $80 million for the modernization and technical re-equipment of the Roshydromet organization. This decision was preceded by almost 3 years of negotiations with the World Bank, as well as the work of various domestic and foreign experts and commissions. The resolution provided for the technical re-equipment and reconstruction of Roshydromet using loans from the International Bank for Reconstruction and Development (under the guarantee of the Government of the Russian Federation).

During the events held in November 2004. In Moscow, negotiations between the delegation of the Russian Federation and the IBRD determined the conditions for the provision of a loan (credit). In accordance with Decree of the Government of the Russian Federation No. 593 of November 4, 2004, the implementation of a large-scale federal project “Informatization of the education system” begins using a loan from the International Bank for Reconstruction and Development. Project components: advanced training, creation and testing of new generation digital educational resources. The project is systemic and is aimed at helping to ensure the accessibility, quality and efficiency of educational services in the system of general and primary vocational education.

The necessary infrastructure for the implementation of the project was created in 2001-2004 as part of the implementation of the federal target program “Development of a unified educational information environment in 2001-2005.” Project "Supply computer equipment and media libraries for libraries of primary and secondary schools of the Russian Federation.” Project “Computerization of rural schools - 2004”. Project “Connecting schools to the Internet.

Conclusion

The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) group are important and significant economic organizations.

Interaction within the framework of the IMF and the World Bank leads to an increase in economic ties between different countries. Provides guarantees for optimal financing, credit and foreign exchange policies of participating countries, and stimulates the balanced growth of international trade.

In a number of cases, the IMF acts as a conductor of the policies of the G7 countries.

Since IMF loans are conditional on the fulfillment of a number of political and economic conditions, participating countries in many cases transform domestic policy. The crisis situation forces people to apply for loans to the IMF and Russia. For the Russian Federation, the use of IMF loans is quite risky, because As long as the state is dependent on the Fund’s loans, its impact continues to be a significant factor in the formation of economic and social policy.

It turns out that the loans provided to Russia are not aimed at improving welfare, but at introducing the conditions necessary for the West. Russia is not considered an equal participant in the Fund because its quota is smaller than the quota of world leaders. In addition, loans are provided to the Russian Federation not on preferential terms, because it refuses to recognize itself as a third world country (for which benefits are provided), and for Russia it is more difficult to fulfill loan obligations due to internal economic stagnation, even with a good foreign economic situation.

Recently, positive trends have been noted in Russia:

— the inflation rate has been stabilized and kept at an acceptable level.

- positive balance of payments

— GDP growth

— bringing product standards closer to world standards

The activities and development of credit institutions cannot be considered locally.

Operating credit organizations must formally meet the requirements for any system: contain all necessary elements in the required proportions; carry out interaction between elements.

Identification of shortcomings that reduce the effectiveness of interaction between the IMF and the World Bank and Russia, and assessment of the state of interaction for compliance with the requirements for it contribute to the development of scientifically based directions for improving interaction.

International monetary, credit and financial relations are an integral part and one of the most complex areas of the market economy. Credit organizations take an active part in the development of global integration, performing the functions of lending to countries, but also accumulating funds from these countries, focusing economic relationships and interests.

The improvement and development of interaction between the IBRD and the IMF with Russia in selected areas is aimed at ensuring that interaction meets modern requirements, strengthening its sustainability and creating the basis for economic recovery.

The mechanisms of action, conditions and system for providing loans from the IMF and the World Bank are considered. The features of international monetary, credit and financial relations in Russia, the features of lending and the influx of foreign investment into Russia, and the problems of participation in international financial institutions have been studied.

The essence, evolutionary formation, functions and role of credit institutions in the economy are revealed. The place and role of credit institutions in the activities of Russia is substantiated.

Directions for improving the interaction of the IMF and the World Bank with Russia have been identified. Methods for forming and maintaining interaction between the IMF and the World Bank and Russia are considered.

List of used literature

1. A. Vavilov “Public debt: lessons of the crisis and principles of management” // LLC “Gorodets-izdat”, M., 2003, pp. –395

2. Agafonov K., Vlasov O.; Shebalin S. Life on loans // Expert-Ural. —

2004.-№42-p.24.

3. Adrianov V.D. Russia in the global economy. Textbook for students of higher educational institutions. - M.: Humanitarian Publishing Center VLADOS, 2002. - 400 p.

4. Balabanov I. T., Balabanov A. I. Foreign economic relations.: Textbook. - 2nd ed., revised. and additional - M.: Finance and Statistics", 2001. - 544 p.

5. Big Economic Dictionary./ Ed. A. N. Azriliyan; M.; "Institute of New Economics." 1997.-864 p.

6. Budget Code of the Russian Federation. As amended by the Federal Law of December 29, 2004. No. 195-FZ

7. Volkov V.N. Russian economy: analysis of the results of 1999 and possible development parameters in 2000. — //Money and credit. – 2000. – No. 2. – P. 3

8. Gerashchenko V.V. On monetary policy and the progress of restructuring of the banking system. — //Money and credit. – 2000. – No. 6. – P. 5-13.

9. Movement of the Russian Federation's debt to international financial organizations in January – March 2005. // Russian business newspaper. 2005. August 23.

10. Money. Credit. Banks. Ed. E.F. Zhukova. – M.: UNITY, 2000. – 622 p.

11. Ivanov K. Ruble: credit of hope. — //Economy and life. – 1999. – No. 45. – P.1.

12. Constitution of the Russian Federation: adopted on December 12, 1993. – M.: Legal literature, 1993. – 62 p.

13. Krylov V. Monetary circulation and the need for its regulation. — //Marketing. - 1999. - No. 2. - P. 20-29.

14. Course of economic theory. Ed. Chepurina M.N., Kiseleva E.A. - Kirov: Publishing House "ASA", 1994. - 436 p.

15. Kuryerov V.G. Foreign trade policy, foreign investments and external debt of Russia//EKO. – 1999. – No. 9. - With. 15 – 33.

16. Lomakin V.K. World economy: Textbook for universities. – M.: Finance, Unity, 1999.-727 p.

17. McConnell K. R., Brew S. L. Economics. In 2 volumes: Transl. from 13th English Ed. – M.: INFRA-M, 2000. – XV, 528 p. – M.: Republic, 1993.

18. " International experience borrowing management regional level", prepared on the basis of the Standart&Poor's report / "Regional Finance" Issue No. 6// Magazine "Regional Finance" Issue No. 6, M. - 2004, p.-84, (pp. 79-82)

19. International monetary, credit and financial relations: Textbook for universities / Ed. L.N. Krasavina. – 2nd ed. Reworked and additional – M.: Finance and Statistics. 2001. – 608 p.

20. World economy. Textbook for universities. Ed. prof. I. P. Nikolaeva. - 2nd ed., revised. and additional - M.: UNITY-DANA, 2000. – 575 p.

21. World Economy: Textbook / Ed. prof. A.S. Bulatova. – M.: Yurist, 2002. – 734 p. – (Series: Homo Faber)

22. World economy and international relations. Ed. G. G. Diligensky. - 2001. - No. 1; 4; 11.

23. Movsesyan A. The future of transnationalization in a globalizing world // Society and Economics. -2000. No. 8.-P.158-178

24. Namozov O. On the causes of monetary deficit in a transition economy. — //Money and credit. – 2000. – No. 6. – P. 41-46.

25. The main directions of the unified state monetary and credit policy for 2000. -//Russian newspaper (Departmental supplement), No. 49-50, 12/18/1999; No. 1, 01/11/2000, No. 2, 01/15/2000, No. 3, 01/22/2000, No. 4, 01/29/2000, No. 5, 02/05/2000.

26. Rogova O. Guidelines for the development of the monetary and financial system. - //Economist. – 2000. – No. 7. – P. 61-72.

27. Russia: integration into the world economy./ ed. R.I. Zimenkova - M.: Finance and Statistics, 2002 - 432 p.

28. Sviridov O.Yu. Money, credit, banks. – Series “Textbooks, teaching aids”. – Rostov-on-Don: “Phoenix”, 2001. – 448 p.

29. Explanatory dictionary of market economics. - M.: Gloria, 1993. - 301 p.

30. Textbook: ed. M. V. Klimovich, S. M. Tumasyants et al., “Management of investment and debt systems” // Publishing House “RTsB”, M.-1998, pp. –304

31. Federal Law “On state regulation of foreign trade activities” dated 13.10. 95 No. 157-FZ, amended 07.98

32. Federal Law “On Foreign Investments in Russia” dated July 9, 1999, No. 79-FZ.

33. Financial and credit encyclopedic dictionary/ Ed. Gryaznova A.G. M.: Finance and Statistics, 2002. - 450 p.

34. Finance and credit: Textbook / Ed. prof. M.V. Romanovsky, prof. G.N. Beloglazova. – M.: Yurait – Publishing house. 2003.-575p.

35. Finance and credit. Ed. Kazaka A. Yu. - Ekaterinburg: MP "PIPP" at the publishing house of the Ural State University, 1994. - 647 p.

36. Jorge Martinez - Vasquez, Jameson Bo, “Russia’s transition to a new federalism”, // Whole world, M. - 2002, pp. - 120

37. Central Bank of the Russian Federation “Main directions of the unified state monetary policy for 1999.” // Economic Issues.

38. Economics of external relations: Textbook for entrepreneurs / Edited by Assoc. A.S. Bulatova. – M.: Publishing house BEK. 1995.

39. Economic theory. Textbook/general. ed. acad. V. I. Vidyapina - M.: INFRA-M, 1998. - 560 p.

40. www.vesti.ru. Speech by the Minister of Foreign Affairs of the Russian Federation I.S. Ivanov at the First Convention of the Russian Association of International Studies.

(IMF) and the World Bank Group (WB).

The World Bank Group is made up of several organizations that perform different functions:

• International Bank for Reconstruction and Development (IBRD);
• International Development Association (IDA);
• International Finance Corporation (IFC);
• Multilateral Investment Guarantee Agency (MIGA);
• International Center for the Settlement of Investment Disputes (ICSID).

The Group's headquarters are located in Washington, DC, USA.

(IBRD) commonly known as the World Bank, is the main lending institution World Bank Group(created at the Bretton Woods Conference in 1944). In contrast, the WB provides loans for the economic development of countries. IBRD is the largest lender to development projects in middle-income developing countries.

(IDA), created in 1960. Its goal is to provide assistance to the poorest countries. Countries with a per capita GDP of no more than $835 are eligible for IDA loans. IDA provides interest-free loans with a 30-40 year repayment period and deferment of principal payments for the first ten years. More than 160 countries are members of IDA.

(MFK), created in 1956. Its purpose is to stimulate the work of the private sector in developing countries. IFC finances private sector projects. Interest rates Lenders vary by country and project. Loans are repaid within 3-15 years. Deferred payments are possible for the first 3-5 years. The IFC has more than 170 member countries.

(MAGI).(Created in 1982) The purpose of the organization is to assist developing countries in attracting foreign investment by providing investors with guarantees against political risks.

Such risks may include military action, civil unrest, and expropriation. MAGI provides a standard insurance policy that guarantees investments for 25 years. The maximum amount guaranteed for one project is $50 million. In addition, MIGA holds consultations with developing countries on issues of attracting foreign investment. More than 140 countries are members of MAGA.

(ICSID).(Created in 1966) The purpose of the organization is to stimulate the flow of investment by providing conditions for conciliation and arbitration negotiations between governments and foreign investors. ICSID provides advice and publishes papers on foreign investment law. About 130 countries are members of ICSID.

World Bank Group (IBRD, MAP, IFC, MIGA)

The World Bank Group (WBG) is a specialized financial institution of the United Nations, which includes several interrelated specialized UN organizations:

• International Bank for Reconstruction and Development - IBRD;
• International Development Association - MAP;
• International Finance Corporation - IFC;
• International Investment Guarantee Agency - MAGI.

The group is headed by a single leadership. The main goal of its activities is to provide financial support to developing countries and countries with economies in transition. Each of the institutes included in the group, independently from its own resources and on its own terms, carries out activities to finance investment projects, promoting the implementation of economic development programs of these countries. But each structure is guided by a common goal, and its activities are subordinated to the overall strategy of the Group.

Since its inception, the World Bank Group has become one of the world's leading investment centers, accounting for about half of the annual volume of investments allocated by international organizations to developing countries.

International Bank for Reconstruction and Development

International Bank for Reconstruction and Development - IBRD is the parent organization of the Group. Created in 1944 simultaneously with the IMF within the framework of the Bretton Woods agreements. The goals of the Bank declared in accordance with the Charter are defined as follows:

• promoting the development of member countries by encouraging foreign investment in the economies of developing countries;
• encouraging private foreign investment by issuing Bank guarantees or direct project financing;
• promoting the long-term balanced development of international trade and maintaining balances of payments through the development of the productive potential of the Bank's member countries with the help of foreign investment.

The Bank's financial resources consist of contributions from member countries to the authorized capital, banking profits from its activities, as well as funds raised in the form of loans on international loan capital markets.

The authorized capital is formed according to the type joint stock company by subscribing to shares. Member countries pay 20% of the quota - 2% in freely convertible currency and 18% in national currency. The rest of the unpaid quota is a reserve fund, against which the Bank, by issuing bond issues, borrows for international market loan capital to finance investment projects financed by it. If necessary, the Bank may recover the unpaid portion of quotas from member countries. But in practice, the Bank has so far managed to attract more than 90% of its resources on the global financial market by issuing bonds.

The highest governing body of the IBRD is Board of Governors, and the executive body is the Directorate. Like the IMF, the Board of Governors is composed of finance ministers or central bank governors. To make important decisions, it meets once a year at a session together with the IMF.

Directorate consists of 24 executive directors. Five of them are appointed by countries with the largest number votes are the USA, Japan, Germany, France and the UK. At the same time, the United States has 20% of the votes, which gives it the right of veto when voting on the most important issues, when 85% of the votes are required to make a decision. China, Saudi Arabia and Russia each elect one director per country. The remaining 16 directors are each elected from a group of countries. The Directorate elects the President of the Bank, traditionally a US citizen. The headquarters of the IBRD is located in Washington.

Currently, almost all countries are members of the Bank, which justifies its name as the World Bank.

Formally, this institution is depoliticized. It clearly declares the focus of its activities on promoting democratic development within the framework of an open market economy, economic growth, and the fight against poverty. But the methods of achieving goals are not without political biases of the leading Western countries that have a majority of votes in governing bodies. It is ensured by the principle of weighted voting: the number of votes of each country depends on its share in the authorized capital.

In addition, according to constituent documents In a number of cases, the IBRD is obliged to follow the decisions of the IMF. The monetary and financial policy pursued by the Bank's member countries must comply with the IMF Charter. Therefore, only those countries that have joined the IMF can be members of the IBRD.

Thus, the IMF and the World Bank, as two simultaneously created Brestton-Woods financial institutions, complement each other in their activities, but each of them performs its own specific functions.

The IMF regulates the foreign exchange system and facilitates external settlements between member countries of the Fund through the mechanism of providing loans in foreign currency to equalize payment and settlement balances. IMF loans can be used by all members - both rich and poor countries, as from financial situation countries depend on the stability of the world monetary system.

The IBRD is primarily a lending institution. Its goal is to help overcome poverty in developing countries, their economic growth and integration into the world economy. It provides loans only to developing countries.

The peculiarity of the Bank's credit policy is that it accumulates funds from the world capital market and, through this, issues loans to those states that have limited access to this market, either directly to their governments, or under government guarantees; in fact, it plays the role of an intermediary.

Without changing the purpose and mechanism of lending, the IBRD changes directions, methods and forms of activity depending on the conditions prevailing in the world and in individual regions, taking into account the accumulated experience.

After the Second World War, the Bank's activities were aimed at assisting in the reconstruction and development of the economies of Western European countries and Japan, and from the mid-50s, when the economies of these countries were restored, its activities moved to the developing world and aimed at the development of countries freed from colonial dependence.

Later, the Bank's activities expanded to countries with economies in transition.

Until the 1980s, the Bank mainly provided loans for project financing. Moreover, the Bank's loans covered no more than 30% of the cost of the loaned object. The rest of the costs should be covered by internal sources. This stimulates the investment process in the country. But the Bank's loans were of a tied nature. And, as critics noted, given significant disruptions in the countries’ economies, project financing could not effectively influence the general economic situation in these countries.

The debt crisis that broke out in 1982 confirmed the correctness of such conclusions. And in the 80s, the Bank introduced the practice of providing untied loans to support economic reforms. But still, the leading role remains with project financing. In order to attract additional resources for the objects it lends, the IBRD practices joint financing. Co-investors have certain benefits when co-financing: the Bank carries out an examination of the project and removes the risk of non-payment.

Monetary and financial crisis of 1997-1998 influenced the Bank's credit policy. He refocused his activities on the region of Southeast and East Asia, which was the epicenter of the crisis. In fiscal year 1998, loans to countries in this region accounted for 1/3 of the Bank's total lending. At the same time, the share of loans not tied to specific objects increased significantly, from 27 to 39%. And a large amount of loans was allocated to the financial sector, its share was 22% versus 6% compared to the previous year.

After the collapse of the Soviet Union, the countries of the former republics of the USSR, as well as the states of Central and Eastern Europe, fell into the orbit of the IBRD. They also become recipients of Bank loans. The Bank provides them with loans for structural adaptation and to support economic reforms. These loans are not tied, are usually provided for specific programs and are disbursed faster.

The IBRD's requirements for issuing loans to support economic reform programs are similar to those put forward by the IMF. These are price liberalization, weakening state influence on the economy and reliance on private capital.

The bulk of IBRD loans to developing countries are directed to agriculture, since, according to management, it is in agricultural areas that the maximum poverty and backwardness are concentrated, the fight against which is the Bank’s primary task. The allocated loans are used for the development of agriculture, infrastructure, education, and healthcare. Much less loans are allocated for the development of manufacturing industries.

The IBRD provides loans for long terms from 15 to 20 years, which significantly exceeds the lending periods of commercial banks.

The cost of loans is determined by the conditions of the global financial market, since the Bank accumulates the bulk of its resources by issuing bonds. But the margin on loan funds is low, from 0.25 to 0.5%, since making a profit is not the purpose of the Bank’s activities.

The IBRD protects private capital, so loans provided by the Bank are also conditional. The Bank's requirements for borrowers are quite strict. They are required to create a favorable legal and administrative climate for the activities of TNCs, exempt foreign investors from taxes, and ensure the free export of profits. The borrowing country must significantly reduce or eliminate subsidies for domestic consumers, liberalize foreign economic activity, devalue the national currency, etc.

International Development Association

International Development Association(MAP) created in 1960 to expand the range of developing countries admitted to credit resources. Formally, it is independent from the Bank, but in fact it is its branch. They are led by a single governing body and one president.

By the 60s of the last century, a number of developing countries were identified for which IBRD loans were unavailable. Firstly, because of their high cost. And secondly, the lending conditions were unacceptable to them. These were the poorest, most backward countries. They needed preferential loans. The International Development Association was created by the Bank specifically to provide such countries with loans on preferential terms. Therefore, only those countries that are members of the IBRD and have a low per capita income are eligible to receive preferential loans. In 1997-1999 the per capita GDP limit giving the right to preferential lending was $925 per year.

MAP loans are provided in the national currency of the borrowing country only to state governments for a period of up to 35-40 years, with a grace period of 10 years. No interest is charged on loans. The borrower only covers administrative costs of 0.5% per annum.

MAP resources are generated from contributions from developed donor countries that are members of the organization and from the net profit of the IBRD.

Providing preferential lending conditions at the expense of these sources should not be considered as charitable activities. After all, the goal of the MDB is to fight poverty. And the lending mechanism on the Bank's terms turned out to be ineffective for a number of developing countries. By creating concessional lending opportunities through MAP, the Bank has significantly expanded its influence in developing countries.

The nature of loans provided by MAP is social in nature. The largest share in the structure of borrowed funds of its clients are loans for the development of healthcare, education, agriculture and rural areas. Unlike the IBRD, this organization practically does not allocate funds to the financial sector. Because MAP's clients are poor countries that are not integrated into the global financial market, they are not affected by financial crises.

Thus, in the strategic plan, IBRD and MAP perform common tasks, but the functions between them are divided.

International Finance Corporation

International Finance Corporation (IFC) established in 1956 as specialized institution UN. Legally and financially it is an independent organization. However, in fact this is a branch of the IBRD. They have a common leadership. The highest body of the IFC is the Board of Governors, the duties of which are concurrently performed by members of the Board of Governors of the IBRD. The functions of the Chairman of the IFC Directorate are also concurrently performed by the President of the IBRD.

The purpose of the Corporation is to promote the development of the private sector in the economies of developing countries, attracting an influx of national and foreign investment into this sector.

Considering that the Bank does not lend much to industry, one of the main activities of the IFC is lending to industrial facilities. In this case, loans are allocated to the private sector without government guarantees. Since the organization takes on credit risks, it credits projects for no more than 25% of the cost and subject to the high profitability of these projects.

The Corporation provides borrowed funds for a period of up to 15 years, the interest rate is at the level of the average annual rates of the world capital market for similar loans. Loans are repaid in the same currency in which they were issued.

IFC resources are generated from various sources. Firstly, through contributions from member countries. The largest amount contributed

The USA, which initiated the creation of this organization, as well as England, France and other developed countries. Secondly, the IFC has at its disposal a number of funds that were created specifically to finance individual investment projects. In addition, the IFC has the right to attract external resources from the global capital market, like the IBRD. But the mechanism for attracting them is different. It acquires shares of companies and makes its own investments in the equity capital of enterprises being built in developing countries without the intention of gaining a foothold in them as an owner. The acquired assets are subsequently resold to private capital.

However, compared to IBRD and even compared to MAP, the financial resources available to the Corporation are significantly smaller. But despite its limited financial capacity, the IFC plays an important role in developing and strengthening the private sector in developing countries, in mobilizing investment resources in developing countries, and in shaping emerging stock markets.

Multilateral Investment Guarantee Agency

Multilateral Investment Guarantee Agency(MAGI) was formed in 1988 in addition to the IBRD to multilaterally guarantee foreign direct investment in developing countries. Capital in the amount of US$1 billion was generated by member countries.

MAGI guarantees the following types of investments:

• contributions in cash or in kind to share capital;
• loans provided by shareholders;
• some forms of non-equity direct investment.
• The warranty period is from 15 to 20 years. Guarantees can cover up to 90% of the investment.

The range of risks covered by MAGA guarantees is wide. The agency insures these investments against political risks in the event of wars, civil unrest, expropriation of the investor's property, failure to fulfill contractual obligations due to political decisions made by the government (for example, a ban on the import of goods into the country) and other political disasters.

Investments can be insured against non-commercial risks in the financial sector, such as, for example, the abolition of currency convertibility and the resulting obstacles to the withdrawal of profits from the country.

Failure to fulfill contractual obligations related to investments due to force majeure circumstances can also be insured by MIGA.

In addition to insuring non-commercial risks, MIGI advises government authorities of developing member countries on issues related to the development and implementation of policies and programs to attract foreign investment. To do this, it organizes meetings and negotiations between the governments of interested countries and international business circles.

Thus, IBRD, MAP, IFC and MIGA form four closely interconnected international financial institutions. They are united by a common goal of activity, which is to provide financial support to developing countries. Within the framework of this goal, each of them performs its assigned functions. Together they form the World Bank Group, the world's largest investment institution, whose mission is to fight poverty and underdevelopment in developing countries, promote economic growth and the development of market relations in these countries and countries with economies in transition.

The International Bank for Reconstruction and Development (IBRD, English: International Bank for Reconstruction and Development) is the main lending institution of the World Bank. The International Bank for Reconstruction and Development (IBRD) is a specialized agency of the UN, an interstate investment institution established simultaneously with the IMF in accordance with the decisions of the International Monetary and Financial Conference at Bretton Woods in 1944.

IBRD goals:

Providing assistance in the reconstruction and development of the economies of member countries;

Promotion of private foreign investment;

Promoting balanced growth of international trade and maintaining equilibrium in balances of payments;

Collection and publication of statistical information,

Initially, the IBRD was called upon, with the help of accumulated budgetary funds of capitalist states and attracted capital from investors, to stimulate private investment in Western European countries, whose economies suffered significantly during the Second World War. Since the mid-50s, when the economies of Western European countries stabilized, the activities of the IBRD increasingly began to focus on the countries of Asia, Africa and Latin America. Unlike the IMF, the International Bank for Reconstruction and Development provides loans for economic development. IBRD is the largest lender to development projects in middle-income developing countries and creditworthy poor countries. Countries applying to join the IBRD must first be admitted to the IMF.

Unlike the IMF, the IBRD does not use standard lending conditions. The terms, volumes and rates of IBRD loans are determined by the characteristics of the project being financed. Like the IMF, the IBRD usually imposes certain conditions on its loans. All bank loans must be guaranteed by member governments. Loans are issued at an interest rate that changes every 6 months. Loans are provided, as a rule, for 15-20 years with deferred payments on the principal amount of the loan from three to five years.

The IMF is an organization representing 186 countries. The goals of his work are:

1. To promote the development of international cooperation in the monetary and financial sphere within the framework of a permanent institution providing a mechanism for consultation and collaboration over international monetary and financial problems.

2. To promote the process of expansion and balanced growth of international trade and thereby achieve and maintain high levels of employment and real incomes, as well as the development of productive resources from all Member States, considering these actions as the primary objectives of economic policy.

3. Ensure the stability of currencies, maintain orderly monetary relations among member states and avoid using currency devaluation to gain competitive advantage

4. Assist in the establishment of a multilateral current account settlement system among member states, as well as in the removal of foreign exchange restrictions that impede the growth of world trade.

5. Due to temporary provision shared resources Fund to member countries, with adequate guarantees, to provide them with confidence, thereby ensuring that imbalances in their balance of payments can be corrected without resorting to measures that could be detrimental to welfare at the national or international level.

The Fund is governed by 186 member states, representing almost every country in the world. The IMF is the central institution of the international monetary and financial system - a system of international payments and exchange rates of national currencies, which allows countries to conduct economic transactions among themselves.

It seeks to prevent crises in this system by encouraging states to adopt sound economic policies; at the same time, as the name suggests, it also provides a fund that can be used by member states in need of temporary financing to resolve balance of payments problems.

an international lending institution, one of the five World Bank Group, created to stabilize the global financial system, the main purpose of which is to reduce poverty in middle-income countries and in creditworthy poor countries, through the provision of loans, guarantees, and risk management products, analytical and consulting services

The International Bank for Reconstruction and Development is an international monetary fund, has the highest AAA rating, is one of the five World Bank Group, its members are 188 countries, its main objectives are to reduce poverty in middle-income countries, provide assistance in the reconstruction and development of the economy of states - members, by providing loans, guarantees and grants

Expand contents

Collapse content

IBRD is the definition

International Bank for Reconstruction and Development (IBRD) - It is an international lending institution and the principal organization of the five members of the World Bank Group. Created at the United Nations Bretton Woods Conference in 1944 to help finance developing countries to improve the standard of living of their people. 188 states are members of the International Bank for Reconstruction and Development. Membership is open only to countries that have joined the International Monetary Fund (IMF).

International Bank for Reconstruction and Development is the main lending institution of the World Bank.

(IBRD) is a credit organization created by the United Nations to assist in the development of the economy, international trade of participating countries, assistance to private investment, and stabilization of the global financial system. Part of the World Bank.

International Bank for Reconstruction and Development (IBRD) is a specialized agency of the UN, an interstate investment institution established in accordance with the decisions of the International Monetary and Financial Conference in Bretton Woods in 1944.

International Bank for Recontraction and Development - it is a specialized agency working in cooperation with the United Nations, created in 1945 to help finance post-war reconstruction and improved living standards in developing countries by providing loans to governments or by guaranteeing loans obtained from other sources.

International Bank for Reconstruction and Development(IBRD)- this is an intergovernmental credit - financial institution, carrying out the following tasks: stimulating the economic development of member countries; promoting the development of international trade and maintaining balances of payments.

an international organization created in 1944 after the Bretton Woods conference to stimulate economic revival and development.

International Bank for Reconstruction and Development - a specialized agency working in cooperation with the United Nations, created in 1945 to help finance post-war economic reconstruction and improved living standards in developing countries by providing loans to governments or by guaranteeing loans obtained from other sources.

International Bank for Reconstruction and Development - a specialized agency of the UN, an interstate monetary and financial organization.

International Bank for Reconstruction and Development - one of the financial institutions of the post-war period, the purpose of which is to assist developing countries in raising the living standards of the population.

International Bank for Reconstruction and Development - An international lending organization representing a specialized financial institution of the United Nations, it is part of the World Bank. The main activities of the IBRD are providing long-term loans at relatively low rates (10% per annum) to public and private enterprises with guarantees from their governments, sending loans to developing countries and regional banks for their subsequent distribution. The IBRD was founded in 1945; only countries that have joined the International Monetary Fund (IMF) can be members of the bank.

History of IBRD

The International Bank for Reconstruction and Development (IBRD) was founded in 1944, in accordance with the agreement of the participants of the Bretton Woods Conference, in accordance with the agreement of the participants of the Bretton Woods Conference. 28 countries signed the "Status of Agreement on the International Bank for Reconstruction and Development", which was developed at the United Nations Conference on Monetary Affairs. The Agreement on the IBRD, which is also its charter, officially came into force on December 27, 1945, and the bank actually began to function on June 25, 1946.

IBRD location

The headquarters of the International Bank for Reconstruction and Development is located in Washington.

IBRD goals

In its early days, the International Bank for Reconstruction and Development (IBRD) assisted in post-war reconstruction in Western European countries whose economies had suffered significantly during World War II. Since the mid-50s, when the economies of Western European countries stabilized, the IBRD's activities increasingly began to focus on the countries of Asia, Africa and Latin America.

In the 1980s. one of the fundamental principles of its credit policy is being revised - the principle of providing loans almost exclusively for specific objects, and the practice of providing loans for structural adaptation is being introduced.

The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income and creditworthy poor countries by helping sustainable development through the provision of loans, guarantees, risk management products, analytical and advisory services.

The official goals of the IBRD are: providing assistance in the reconstruction and development of the economies of member states by “promoting capital investments for productive purposes”; encouraging “production development in economically less developed countries”; encouraging private investment abroad by guaranteeing loans provided by private entities or participating in such loans; providing loans from own or borrowed funds.

Activities of the IBRD

The main activity of the International Bank for Reconstruction and Development is providing loans for economic development.

Providing IBRD loans

The IBRD provides loans to low-income countries that are clients of the Bank and access to credit resources in larger volumes, at favorable conditions, with longer maturities and on a more stable basis than the capital market. IBRD is the largest lender to development projects in middle-income developing countries and creditworthy poor countries.

IBRD does not use standard lending terms. The terms, volumes and rates of IBRD loans are determined by the characteristics of the project being financed. The IBRD usually makes its loans subject to certain conditions. All bank loans must be guaranteed by member governments. Loans are issued at an interest rate that changes every 6 months. Loans are provided, as a rule, for 15 to 20 years with deferred payments on the principal amount of the loan from three to five years.

It must be emphasized that the bank covers only 30% of the cost of the object with its loans, and the largest part of the loans is directed to the infrastructure sectors: energy, transport, communications. Since the mid-80s. The IBRD increased the share of loans allocated to agriculture (up to 20%), healthcare and education. Less than 15% of bank loans go to industry. In recent years, the IBRD has been dealing with the problem of settling the external debt of developing countries: it issues 1/3 of loans in the form of so-called co-financing. The Bank provides structured loans to regulate the structure of the economy and improve the balance of payments.

Supporting low-profit projects

The IBRD supports long-term investments in human resources, social and environmental development - areas that private lenders generally do not consider worthy of attention.

Assistance in the field of education is aimed primarily at ensuring accessibility, high quality and equal opportunities to receive it.

Much attention is paid to maintaining a clean and healthy environment, conducting extensive consultations around the world to collect information necessary to develop an environmental strategy.

Bank assistance during periods of crisis

The IBRD supports the financial stability of borrowers by providing assistance during periods of crisis, when the poorest people suffer the most.

IBRD's influence on policy

IBRD uses financing to influence and stimulate the adoption of key policies and institutional reforms (such as social safety net reforms and the fight against corruption).

IBRD Grants

The IBRD provides financial assistance (in the form of grants allocated from the IBRD's net income) to create global public goods that are critical to improving the living standards of the world's poor.

The purpose of the grants is to facilitate project development by stimulating innovation, collaboration between organizations and the participation of local stakeholders in project work. In recent years, grants, either directly funded or managed through partnerships, have been used for the following purposes:

Debt relief for highly indebted countries;

Improving the efficiency of sewerage and water supply services;

Supporting immunization and vaccination programs to reduce the incidence of infectious diseases such as malaria;

Combating the HIV/AIDS pandemic;

Support to civil society organizations;

Create incentives to reduce emissions greenhouse gases.

Analytical and consulting services

Although the Bank is known primarily as a financial institution, one of the most important activities it carries out is the analysis of policies pursued by countries and the development of appropriate recommendations in order to improve the socio-economic situation in countries and improve the living conditions of the population. Much attention is paid research work on a wide range of issues such as the environment, poverty, trade and globalization, and economic and industrial research in specific sectors. The Bank analyzes the country's economic prospects, including, for example, the banking and financial sectors, trade, poverty issues and the social safety net.

The Bank uses its resources and accumulated knowledge (extensive contacts, wealth of knowledge, information and experience acquired over a long period of time working in many countries, on many projects, participating in the development process) to disseminate information to its clients so that they have all the necessary knowledge and skills to meet development challenges and promote economic growth. Analysis, recommendations and knowledge are shared with client countries, their governments and other development stakeholders, and with society at large.

The bank has about 70 regional and country offices and representative offices, including in Russia. 188 countries are members of the IBRD. Membership is open only to countries that have joined the International Monetary Fund (IMF), at a time and under such conditions as determined by the bank. Each IBRD member country must become a subscriber to its capital, with the minimum share of capital contributed determined by the bank. Russia joined the IBRD in 1992.

The IBRD is comparable to an international cooperative that is owned by member states.

According to the charter, in order to make the most fundamental, strategic decisions, it is necessary to obtain at least 85% of the votes of the World Bank shareholders. This provision allows the United States to block the adoption of decisions that do not suit them.

Authorized capital of IBRD

The authorized capital of the IBRD is formed from contributions from member states. Initially, the authorized capital did not exceed $10 billion, in 1998 it amounted to $190.8 billion, and as of June 30, 2009, it was already $1,574.3 billion, i.e., it increased over the entire period by almost 158 once and for all rapid growth occurred in the 2000s.

The size of contributions is determined depending on the economic and financial weight of each country and is proportional to its participation in the IMF. The authorized capital is divided into paid-up capital and capital, which serves as a guarantee when the bank receives a loan on the world capital market. In recent years, the board of directors has repeatedly decided to increase the amount of capital.

IBRD funds

The International Bank for Reconstruction and Development attracts the vast majority of resources for providing loans (up to 95%) by issuing and placing bonds on the world financial markets, which are purchased by private banks and other financial institutions. Bank bonds have highest rating reliability. IBRD is a major borrower in global capital markets and the largest non-resident borrower in all countries where its securities are sold. Thus, he plays an important role as an intermediary in the international redistribution of loan capital.

The bulk of the funds the bank needs for credit operations, the volume of which continues to increase, it receives by borrowing on the world capital market. The IBRD sells its securities by directly placing them in the state. institutions and central banks, as well as on the open market, where they are sold through investment, trading or commercial banks. The Bank receives loans in various currencies of IBRD member countries, but, as a rule, they are provided in hard currency at rates that are offered in this market only to prime borrowers. Since July 1982, the bank has resorted to short-term loans with floating interest rates. He sells discounted securities on the American capital market for dollars. Increasingly, the bank is resorting to swap operations.

IBRD profit distribution

Profits earned during the previous year are either entered into the general reserve (from 75 to 80%) or transferred as a grant to the International Development Association.

IBRD financing for lenders

All citizens and companies of IBRD member countries are eligible for financing. IBRD provides technical assistance in financing. When providing loans, payment for control services is always provided, as well as activities to study the effectiveness of the project and the progress of its implementation.

Distribution of IBRD funds

At least 90% of the funds must be allocated for projects (establishment or improvement of self-sustaining production units), and no more than 10% can be used for programs (import of capital equipment and raw materials in connection with national development programs).

Distribution based on per capita income. The distribution of loans by per capita income in a country is dictated by the differentiation of the bank's borrowers, the reduction of funds available to IDA, and ultimately the emphasis on poverty alleviation.

The main criterion when granting a loan is to direct it to where it will give the greatest effect from the point of view of the bank's program, and at the same time take into account the opinion of the borrower.

The World Bank advocates for the eradication of poverty

Recipients of IBRD funds

The following are eligible to receive IBRD loans:

Developing member states of the bank and their constituent political units;

Government institutions these countries with guarantees from the state;

Public and private companies of these countries with guarantees from the state;

National development banks that re-lend funds received to finance small projects at the bank's discretion.

The Bank lends between US$15 and 20 billion annually to finance projects in more than 100 countries with which it cooperates. These projects are implemented in a variety of areas of socio-economic development - from infrastructure to education, health and public financial management. The development of Bank-financed projects and the supervision of their implementation are carried out within the framework of a project cycle, duly documented in the relevant documentation. Documents generated as part of the project cycle can serve as valuable resources for stakeholders wishing to have information about Bank-financed projects and for businesses wishing to participate in those projects.

Country Assistance Strategy

The Bank recognizes that many aid efforts in the past, including by the Bank itself, have failed because the goals were determined by the donors themselves rather than by the governments of the countries they were trying to help. Consistent with current development policies, the Bank helps governments guide the preparation and implementation of development strategies, confident that programs that are designed and implemented by countries themselves and have broad stakeholder support are more likely to succeed.

In low-income countries, the Bank uses a Country Assistance Strategy (CAS) approach that involves broad consultation and consensus building on options to accelerate development. Throughout this process, the country develops a national poverty reduction strategy, which provides a framework on which donors can better coordinate their programs and align them with the country's priorities. The government is consulting with a wide range of stakeholders while conducting a comprehensive analysis of the poverty and economic situation in the country. Based on the results of consultations and analysis, the government determines its priorities and sets poverty reduction targets over a period of 3 to 5 years. These targets are specified in the Poverty Reduction Strategy Paper (PRSP). The Bank and other aid organizations then align their efforts with the country's strategy—the surest option for increasing development effectiveness.

The Bank's preliminary country engagement plan is based on its Country Assistance Strategy (CAS), which, for low-income countries, is developed based on the priorities set out in the Poverty Reduction Strategy Paper. The CSS is being developed jointly with the government and other stakeholders. The CAS development process may draw on analytical work carried out by the Bank or others in a wide range of socio-economic sectors, such as health, education, agriculture, public expenditure and budgeting, public financial management and public procurement.

Project identification stage

A Country Assistance Strategy (CAS) is a country assistance plan. In low-income countries, the CCS is based on the priorities set out in the Poverty Reduction Strategy Paper. The objectives set out in the CAS define the priorities of the lending program and are a useful source of information for stakeholders and businesses wishing to gain insight into which sectors and areas of activity the Bank may undertake lending activities in the future. During the identification stage, the Bank works with national governments to identify projects that can be financed in accordance with agreed development goals. Once a project is identified, a team of Bank staff drafts a Project Concept Document (PCN), an internal document that summarizes, in four or five pages, the main elements of the project, its purpose, potential risk factors, alternative project scenarios, and a rough timeline for the approval process. project.

Project preparation stage

This stage of the process is determined by the needs of the country with which the Bank is collaborating and can take from several months to three years, depending on the complexity of the planned project. The Bank plays a supporting role by conducting analyzes and providing recommendations at the country's request. During this period, technical, institutional, economic, environmental and financial issues relating to the project are analyzed in detail, discussed and resolved, in particular, a conclusion is made as to whether alternative methods of achieving the project's objectives exist. Projects that the Bank plans to finance must be assessed to ensure that they are acceptable from an environmental point of view (environmental assessment). The scope and parameters of the environmental assessment depend on the scale and potential environmental impact of the project.

Project examination stage

The Bank is responsible for this stage of the process. Bank staff evaluates the results of work performed during the project identification and preparation stages. To do this, they usually spend three to four weeks in the client country. They prepare for Bank management either a Project Review Document (for investment projects) or a Policy Document (for development lending), and the Management Group financial activities evaluates the financial aspects of the project. At this stage, additions and corrections are made to the Project Information Document (PID). All these documents are published after the project is approved.

Negotiation and approval stage

After Bank staff have approved the proposed project, the Bank and the country seeking to borrow funds discuss the project to finalize it. The parties agree on the terms and conditions of the loan. A Project Appraisal Document (PAD) or Policy Document (PGD), as well as a President's Memorandum and legal documentation, are then submitted to the Board of Directors for consideration. Relevant documents are also submitted for final approval to the government of the borrowing country. They may also require ratification by the country's cabinet or legislature. Once the loan agreement has been approved by both parties, it is officially signed by the parties' representatives. Once this has occurred, the loan or credit is declared effective and, when the appropriate conditions are met, the disbursement of funds begins and the agreement becomes available to the public.

Implementation and supervision stage

The borrowing country is responsible for project implementation, while the Bank is responsible for supervision. Once the loan is approved, the government of the borrowing country to which the Bank is providing technical assistance establishes technical requirements and evaluates received applications from tender participants for the purchase of goods and services under the project. The Bank oversees these activities to ensure that proper procurement procedures are followed. As soon as the Bank is convinced of this, the allocation of funds begins. The Bank's Financial Management Team oversees the financial aspects of the project, including periodically requiring the submission of audited financial statements.

At the end of the loan disbursement period (from 1 to 10 years), a Project Completion Report, which describes achievements, challenges and lessons learned, is presented to the Bank Board for review.

Project evaluation stage

Upon completion of the project, the Bank's Operations Evaluation Department conducts an audit to compare the results with the originally established goals. During the audit, the project completion report is reviewed and a separate report is prepared. Both reports are then submitted to the Board of Executive Directors and the borrower's government. These documents are not publicly available.

Work on a project can be stopped at any stage of the project cycle - from preparation to approval. For those projects that never become active, the final document is actually the Project Information Document.

Forms of IBRD financing

The IBRD operates in the form of both parallel and mixed financing. With parallel financing, each lender provides funds for a separate part of the project on its own terms. In a mixed form, each participant finances the entire project within the limits of their share. In 1983, the IBRD introduced new forms of financing that allowed banks to engage in commercial lending in addition to the loans they directly provided for the project. Such loans are provided at 15 - 20% per annum, and their repayment period is significantly increased compared to normal market conditions. The borrower begins by repaying the commercial banks, and only after part of their loan is fully repaid does it begin to pay the amounts due to the IBRD. The bank can sell its portion of the loan to private lenders as it amortizes. It may also offer its conditional participation in the final stage of repayment of a loan provided on market terms. It is also possible for the World Bank to guarantee the final stages of repayment of a private loan without its direct participation.

IBRD uses the following forms of financing:

Conventional loans (first window, at current market interest rates;

Global loans fin. development agencies;

Subsidies and grants;

Providing guarantees.

The Bank does not participate in special loans (which are provided through IDA), does not invest in equity or increased level risk (unlike IFC in both cases), does not participate in leasing and interest subsidies.

IBRD lending conditions

Loan conditions may vary:

The amount allocated for one project is at least 2 - 3 million dollars, no upper limit is set;

The IBRD's share is at least 1 - 2 million dollars. The maximum amount is not defined by the charter, but is actually $200 million;

The average amount of participation is from 50 to 70 million dollars, or 1/3 of the project cost;

Repayment terms range from 15 to 20 years, including a 4-5 year grace period.

IBRD interest rates on loans

The government of the country receiving the loan must provide appropriate guarantees. Other conditions require payment of the principal amount in equal semi-annual installments, payment of interest every six months, early repayment loan is punishable by penalties. The currency of loans is US dollars, but repayments are made in the currency in which they were actually issued. To reduce the risk of borrowers, the bank has created a currency pool for them and accepts interest payments in one currency, regardless of the currency in which the loan was provided. Borrowers account for 10 to 60% of the project cost.

IBRD Bond Positions

The attractiveness of IBRD bonds for other institutions is explained by the following conditions:

The bank never made late payments or suffered losses on loans, and also never revised payment terms;

The bank's debt is long-term in nature and amounts (as of 1980) to less than 6% of the total value of all funds, debt to the bank and authorized capital;

That part of the capital that is contributed by member countries of the bank upon request is in the hands of the governments of these countries, and this actually serves as a guarantee to bondholders that these funds will not be spent on extraneous purposes.

Resume. The World Bank is not, strictly speaking, a bank in the usual sense of the word, since its loans result in derivative deposits from borrowers. If a bank cannot borrow or does not borrow, then it cannot lend. The Bank resorts to borrowing from financial markets to finance its loans to developing countries.

IBRD borrowers are middle-income countries with at least some access to private capital markets. Some countries that have low per capita incomes and receive credit resources from IDA are creditworthy enough to receive certain resources from the IBRD. These countries are called “mixed borrowers”. Even excluding IBRD loans to mixed borrowers, as much as 25 percent of the population living on less than $1 a day lives in IBRD borrowing countries. The IBRD provides important assistance in poverty reduction by providing access to credit in greater volumes, on favorable terms, with longer maturities and on a more sustainable basis than in the capital market.

IBRD Performance by Sector

A standard set of key indicators by sector has been used since July 1, 2009. The findings are preliminary, but early results are encouraging, indicating that projects funded under IDA 14 and IDA 15 have already contributed to important results.

Sector - education

More than 1 million teachers have been certified to teach in primary schools. More than 600,000 additional classrooms have been built or rehabilitated.

Sector - healthcare

In the areas of health, nutrition and population, more than 11 million people gained access to basic services. About 450,000 health workers have been trained. More than 2,500 medical institutions have been built, modernized and/or equipped. Almost 13 million children were immunized and about 8 million received a dose of vitamin A. About 28 million insecticide-treated protective nets were purchased and distributed to the population as part of malaria prevention efforts. More than 28,500 adults and children living with HIV have been treated under comprehensive antiretroviral therapy programs.

Sector - road transport

About 3,790 km of rural roads and 1,900 km of larger roads have been built or restored.

Sector - water supply

Nearly 6.8 million people living in project areas gained access to improved water supplies. About 11,600 local water points have been built or rehabilitated. Nearly 334,000 homes have piped water, and another 157,000 plumbing systems have been restored. Support is provided to nearly 1,280 water utilities.

In addition to the IBRD, the following financial institutions were created: International Development Association, International Finance Corporation, Multilateral Investment Guarantee Agency, International Center for the Settlement of Investment Disputes. All of these financial institutions work closely together to form the World Bank Group.

Composition of the World Bank Group

The World Bank Group, or World Bank, WB, is an international financial institution designed to provide loans to member countries.

The World Bank is a multilateral lending institution consisting of five closely related institutions whose common goal is to improve living standards in developing countries through financial assistance from developed countries.

Its members include: International Bank for Reconstruction and Development, IBRD; International Development Association, IDA; International Finance Corporation, IFC; Multilateral Investment Guarantee Agency (MIGA); International Center for Settlement of Investment Disputes, ICSID. The first three organizations play the role of development banks, the remaining two are designed to stimulate the influx of foreign investment into developing countries and emerging market countries. The activities of all these structures are guided by a single strategy, but each of them performs its own specific functions.

IBRD (International Bank for Reconstruction and Development)

The International Bank for Reconstruction and Development (IBRD) is the first lending institution within the World Bank. IBRD was established in 1944 as a independent organization, which provides loans and advisory services to middle-income and creditworthy countries, its mission is to provide credit for economic development.

IDA (International Development Association)

The International Development Association (IDA) is one of the World Bank organizations that provides assistance to the world's poorest countries. Established in 1960, IDA aims to reduce poverty by providing loans (called “credits”) and grants to implement programs to increase economic growth, reduce inequality, and improve people's living conditions.

IDA complements the activities of the International Bank for Reconstruction and Development (IBRD). IBRD and IDA share staff and headquarters and apply the same rigorous standards when evaluating projects.

IDA is one of the largest sources of aid to 82 of the world's poorest countries, 40 of which are in Africa, and the largest source of donor funds providing basic social services in these countries. IDA-funded interventions have helped change the lives of more than 2.5 billion people, most of whom live on less than $2 a day.

IDA provides loans on preferential terms. This means that IDA loans are issued at zero or very low percentage for a period of more than 25 - 40 years and provide a grace period of 5 - 10 years. IDA also provides grants to countries facing debt crises.

In addition to providing concessional loans and grants, IDA also does extensive debt relief work through the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI).

Since its inception, IDA has provided support to 108 countries.

IFC (International Finance Corporation)

The International Finance Corporation (IFC) is a member of the World Bank Group and the largest global development institution that works exclusively with the private sector in developing countries.

Created in 1956, the IFC is owned by 184 member countries, which jointly determine its policies. The Corporation's operations in more than 100 developing countries enable companies and financial institutions in emerging markets to create jobs, generate tax revenue, improve corporate governance and environmental performance, and benefit local communities.

IFC's vision: People should be able to overcome poverty and change their lives for the better.

IFC's strategic priorities:

Focus on markets with a high level of risk;

Address climate change challenges and ensure environmental and social sustainability;

Remove barriers to private sector development in infrastructure, health, education, and the food supply chain;

Develop local financial markets;

Build long-term client relationships in emerging countries market economy.

MAGI (International Investment Guarantee Agency)

International Investment Guarantee Agency (MIGA). Founded in 1988. The agency's goal is to encourage foreign investment in developing countries by providing guarantees to foreign investors against losses caused by non-commercial risks.

MIGA offers investors guarantees against non-commercial risk, provides recommendations to the governments of its developing countries on the development and implementation of economic policies, programs and rules related to foreign investment, and promotes dialogue between the global business community and the governments of interested countries on investment issues.

The Multilateral Investment Guarantee Agency (MIGA) currently has 158 member states, including Russia. Location - Washington.

The source of financing is the authorized capital ($948 million), which provides guarantees in the amount of $745 million.

The Agency provides guarantees to investors selected by it (covering up to 90% of the total investment) for a period of 15 - 20 years for investments in member states (developing countries) against non-commercial risks, i.e. provides a kind of insurance against political, economic and other types of risks (expropriation or similar measures, transfer of foreign currency, violation of contracts due to government regulations, war and civil unrest, revolutions, etc.).

MAGI offers advisory and promotional services through its Policy and Advisory Services Department. Through the Foreign Investment Advisory Service, working jointly with the IBRD and the IFC. The Agency helps member states develop the policies and infrastructure needed to attract foreign direct investment.

ICSID (International Center for the Settlement of Investment Disputes)

The International Center for the Settlement of Investment Disputes (ICSID) was founded in 1966. It promotes international investment flows by providing arbitration and dispute resolution services between governments and foreign investors.

ICSID is an autonomous international organization established by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States with more than one hundred and forty member states. The main purpose of ICSID is to provide opportunities for conciliation and arbitration of international investment disputes.

The ICSID Convention is a multilateral treaty drafted by the vice presidents of the International Bank for Reconstruction and Development (World Bank). It was drawn up on March 18, 1965 and came into force on October 14, 1966.

The Convention sought to remove the main obstacles to free international flows of private investment emanating from non-commercial risks and the lack of specialized international methods for resolving investment disputes. ICSID was created as an impartial international body with the provision of means to resolve legal disputes between eligible parties, through conciliation or arbitration procedures. Referring to the ICSID of objects always occurs with the consent of the parties.

ICSID plays an important role in the field of international investment and economic development.

Today, ICSID is considered the leading international arbitration institution for the settlement of investor-state disputes.

World Bank Management Structure

The highest governing body of the World Bank is the Board of Governors, which consists of the finance ministers or heads of central banks of member countries. Its sessions, which are attended by the most important decisions, which determine the bank's policy, are held once a year and are held in conjunction with meetings of the IMF Board of Governors.

The executive body is the board of directors (directorate). The Board of Directors provides general management of the World Bank, including the approval of all loans and guarantees and other decisions related to the operation of the bank. The President of the World Bank is elected by the Board of Directors for a five-year term and can be re-elected an unlimited number of times. He chairs board meetings and is responsible for managing the day-to-day activities of the bank.

The day-to-day activities of the World Bank are carried out under the direction of the President, senior management organizations and vice presidents responsible for specific regions, sectors, areas of activity and performing specific functions.

Sources of texts, pictures and videos

ru.wikipedia.org - free encyclopedia

en.wikipedia.org - free encyclopedia

web.worldbank.org - data on developments in countries around the world

worldbank.org - World Bank Group

dic.academic.ru - dictionaries and encyclopedias

vedomosti.ru - daily business newspaper "Vedomosti"

banki.ru - financial information portal

madan.org.il - scientific portal

psainath.files.wordpress.com - blog - platform

odiplom.ru - diploma, coursework, abstracts

rusrand.ru - center of scientific and political thought and ideology

en.wikipedia.org - encyclopedia on English

smotri.com - video hosting

youtube.com - the most popular video hosting

google.ru - the largest search engine in the world

translate.google.ru - translator from the Google search engine

yandex.ru is the largest search engine in the Russian Federation

wordstat.yandex.ru - a service from Yandex that allows you to analyze search queries

video.yandex.ru - search for videos on the Internet via Yandex

images.yandex.ru - image search through the Yandex service

maps.yandex.ru - maps from Yandex to search for places described in the material

Application links

windows.microsoft.com - website of Microsoft Corporation, which created the Windows OS

office.microsoft.com - website of the corporation that created Microsoft Office

chrome.google.ru - a frequently used browser for working with websites

hyperionics.com - website of the creators of the HyperSnap screenshot program

getpaint.net - free software for working with images

Article creator

vk.com/id1797151 - VKontakte profile

facebook.com/profile.php?id=100001616589610 - Facebook profile

twitter.com/LediMarinka - Twitter profile - Twitter profile

my.ya.ru/mar-karpovich - profile on Mi Yandex Ru

livejournal.com/profile?userid=70907276&t=I - blog on LiveJournal

my.mail.ru/mmm-ka - profile on My World @ Mair Ru

plus.google.com/116800971298807778458/posts?hl=ru - profile on Google+

liveinternet.ru/users/5598936/profile - blog on LiveInternet

blogger.com/switch-profile.g?switchProfileSource=3&continue - blog on Blogger

linkedin.com/profile/view?id=280735180&trk=nav_responsive_tab_profile - LinkDin profile