The IMF’s preferred creditor status: Questions after the Eurozone crisis

Susan Schadler 28 April 2014

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Throughout the history of IMF lending, the institution has had preferred creditor status – that is, distressed countries borrowing from the IMF are expected to give priority to meeting their obligations to the IMF over those to other creditors. This status is a defining characteristic of the IMF’s role in financial crises – it provides a high degree of confidence that IMF resources are safe when other creditors face substantial uncertainty about full repayment.

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Topics:  Global crisis Global governance International finance

Tags:  IMF, Eurozone crisis, preferred creditor status

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