chapter  6
5 Pages

The Role of the International Monetary Fund

Graph 1 shows that the increases in the level of use of Fund credit since the sixties were much smaller for the Western Hemisphere than for other non oil exporting developing countries and for industrial countries. During the seventies net Fund credit to the Western Hemisphere was significant only during the period 1975-6, when the Oil Facility (which operated only during those two years to compensate for the rise in the price of oil) and the Compensatory Financing Facility (which compensates for slower growth in exports than the trend value) were widely used by Latin American countries.