Provision of short-term loans to solve balance of payments problems is done by the
Answer Details
The provision of short-term loans to solve balance of payments problems is done by the International Monetary Fund (IMF).
Balance of payments refers to the difference between a country's earnings from exports and its payments for imports. When a country experiences a deficit in its balance of payments, it means that it is importing more goods and services than it is exporting. This can lead to a shortage of foreign exchange, making it difficult for the country to pay for essential imports, such as fuel or medicines.
The IMF provides short-term loans to countries facing balance of payments problems. These loans are intended to help countries stabilize their economies and address the underlying causes of the balance of payments deficit. The loans come with conditions, such as implementing economic reforms and reducing government spending, to ensure that the country can repay the loan and achieve long-term economic stability.
The IMF is a specialized agency of the United Nations, established in 1944 to promote international monetary cooperation and exchange rate stability. It has 190 member countries and works to ensure the stability of the international monetary system, facilitate international trade, and reduce poverty.