The international monetary fund in eastern europe: seven years of experience

Abstract

Almost seven years ago, in January 1990, the IMF approved for Poland its first stabilisation program in Eastern Europe. The Fund's role was to provide financial support to macroeconomic stabilisation in the wake of rapid liberalisation of prices, opening of foreign trade and devaluation of currency. In 1991, as reforms in Eastern Europe unfolded, stabilisation programs for other countries followed. During the nearly seven years since, the IMF has provided billions of USD to countries in the region, and all of the former centrally planned economies except Slovenia have received financial support from the IMF. The Fund's financial assistance never comes with no strings attached. Such assistance must serve not only the immediate purpose of balance of payments support but also the longer-term objective of eliminating the problems causing the recipient country to seek the Fund's assistance.