What is the mechanism by which IMF loans are made ?

Question

("Arrangement" or "Conditionality" ? )

Answer 1

The IMF lending mechanism is through an "arrangement," where the borrowing country needs to follow the specific policies and measures that IMF has deemed necessary to resolve its balance of payments problem.

Sometimes the IMF prescriptions are like bitter pills to swallow, and many countries have expressed disagreements

Answer 2

First of all, a country makes the requirement of the funds, giving explanation what are they going to do with the money ( they usually use in developing projects, helping people, etc. ).

The countries in the IMF vote if they agree or disagree in giving this loan to the country.

They usually check the viability of the project, but sometimes corrupted countries use the money for other purposes different form the original.