Understanding how the IMF works is advanced financial literacy
Lesson one: Nations ALWAYS approach the IMF, never the other way around. The IMF is a 'lender of last resort.' They give low or no interest loans to nations that need money and have no other options. Why? Leverage. They take away a nation's sovereignty, and no govt would allow that unless they had to. This allows the IMF to dictate terms and be part of the decision-making process regarding anything related to loan conditions during the duration of the loan
IMF loans are a harbinger of bad times to come not because of any specific conditions imposed but because if a nation takes an IMF loan it means they are in a weak position to begin with
