International financial institutions

Participant nations may use SDRs as a source of currency in a 
spot transaction, as a loan for clearing a financial obligation, as a 
security for a loan, as a Swap against currency, or in a forward 
exchange operation. A nation with a balance of payments need may 
use its SDRs to obtain usable currency from another nation 
designated by the fund. A participant also may use SDRs to make 
payments to the Fund, such as repurchases. The Fund itself may 
transfer SDRs to a participant for various purposes including the 
transfer of SDRs instead of currency to a member using the Fund’s 
resources.
By providing a mechanism for international monetary 
cooperation, working towards reducing restrictions to trade and 
capital flows and helping members with their short-term balance of 
payments difficulties, the IMF makes a significant and unique 
contribution to human welfare and improved living standards 
throughout the world.

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Services
Besides supervising the international monetary system and 
providing financial support to member countries, the IMF assists its 
members by:
• 
Providing technical assistance in certain areas of its 
competence.
• 
Running an educational institute in Washington and 
offering training courses abroad.
• 
Issuing wide variety of publications containing valuable 
information and statistics that are useful not only to the 
member countries but also to banks, research institutes, 
university and the media.
15.6 ASIAN DEVELOPMENT BANK (ADB)
The Asian Development Bank is a multilateral developmental 
finance institution founded in 1966 by 31 member governments to 
promote social and economic progress of Asian and the Pacific region. 
The Bank gives special attention to the needs of smaller or less 
developed countries and gives priority to regional/non-regional 
national programmes.
In early 1960, the United National Economic Commission for 
Asia and Far East (UNECAFE) estimated that Asia and the Pacific 
region had an annual deficit of US $ one billion. The ADB was formed 
to fill this gap. The inaugural meeting was held in Tokyo and the 
newly named bank was installed in Manila (Philippines). The first 
President was Mr. Wanatanade and during his initial years the bank 
conducted regional surveys to develop a fuller understanding of the 

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social and economic conditions of the Developing Member Countries 
(DMC).
In 1974, the Asian Development Fund was established to 
streamline the bank’s means of financing. During 1972-76, the Banks’ 
commitment to the DMCs increased from $316 million to 776 million. 
In the late 70s, the bank recognised the need to develop additional 
strategy to reduce poverty in the region, so they evolved the concept of 
multi-project loans which was a cost-effective means for funding 
projects too small for the Bank’s involvement.
In 1978, the Asian Development Fund was increased to 2.15 
billion. 1986 was a significant year for the Bank because the Peoples 
Republic of China joined the Bank and India received her first loan of 
$100 million to the ICICI (Investment Credit and Investment 
Corporation of India) for one lending to Private Sector enterprises. In 
1993, annual lending commitments rose to $5 billion and the 
cumulative total by 1991 was $37.6 billion for 1039 projects.
On the borrowing front, in 1991, the Bank offered Dragon 
Bonds which was a US $ 300 million offering in the capital markets or 
Hong Kong, Singapore and Taipei.
The present President is Mr. Tadao Chino, who was Japan’s 
former Vice Minister of Finance for International Affairs, before he 
took over in January 1999.