This will be a help or support provided by the IMF to support countries which are suffering from capital flight. It stated that the IMF has allowed for an emergency finance mechanism so as to facilitate the countries which have been hit by the prevailing financial crisis. The scheme has been said to be a sppedy procedure for the approval of loans, as stated by the IMF chief Dominique Staruss-Khan and was used in the financial crisis in 1997. It is a procedure which has its legal validity and has been stated to be procedure adopted by the IMF in situations of credit crisis.
It was stated that due to slump in demand in Western economies there had been cut in credit lines which had adversely affected emerging economies and due to this the IMF stated it was willing to provide assistance to countries which are in need to funding. ...Show more