A: When the IMF provides loans to member countries, it attaches corresponding loan conditions. The larger the loan amount, the stricter the additional loan conditions. The IMF sets the loan conditions because it is not a development aid agency. The IMF loan must be combined with the sustainable balance of payments prospect and repayment ability of the recipient country to ensure that the use of the loan will not damage the liquidity of IMF funds and help adjust the economic situation of the recipient country. However, for a long time, the influence of loan conditions has been controversial among economists, especially scholars in developed and developing countries.

The dispute between developed and developing countries on IMF loan conditions is actually a disagreement on the balance between internal and external economic policies. Based on their own interests, developed countries believe that the main reason for the imbalance of international payments in developing countries is excessive demand in the economy, so it is necessary to ensure that lending countries implement austerity policies to reduce domestic absorption through loan conditions; Developing countries believe that loan conditions actually require deficit countries to make unilateral adjustments, which will further strengthen the asymmetry of balance of payments adjustment. Moreover, the monetary tightening and demand adjustment required by the loan conditions are in great conflict with the economic development goals of developing countries. The essence is to solve the external problem of unbalanced international payments and put it above the internal problems of economic development.