CURRENT AFFAIRS

Detailed explanation-1: -In January 1995, the IMF entered the scene and laid out a 7.8 billion bailout package that would aid Mexico in overcoming the crisis. However, the United States stepped in and increased this rescue package to US$50 billion with the aid of private banks, the IMF, and the Bank for International Settlements.

Detailed explanation-2: -B… Argentina is the biggest debtor to the IMF, with a total outstanding debt of $42.2bn. The country has had a long and troubled relationship with the IMF, with a history of equally spectacular fall-outs and bail-outs. At the turn of the century, the IMF made $88.3bn available to bail out the country’s ailing economy.

Detailed explanation-3: -The Tequila Crisis began on Dec. 20, 1994 when the Mexican peso was devalued, causing a global currency crisis and resulting in a $50 billion IMF bailout to Mexico’s economy. Both domestic and international economic factors, along with political forces helped precipitate the crisis.

Detailed explanation-4: -The IMF’s current total resources of about SDR 977 billion translate into a capacity for lending of about SDR 713 billion (around US$1 trillion).