How IMF lending helps
The IMF Emergency loan aims to give countries a break to implement adjustment policies in an organized manner, which will return conditions to a stable economy and sustainable growth. These policies will vary according to country conditions. For example, a country facing a sudden drop in prices of major exports may need financial assistance while implementing measures to boost the economy and expand its export base. A country with severe capital inflows may need to address the problems that have led to a loss of investor confidence, and interest rates may be very low; budget deficits and debt stocks grow very quickly; either the banking system is ineffective or poorly regulated.