IMF International Monetary Fund Continuity of the banking

IMF International Monetary Fund Continuity of the banking system Maintenance of public services & wages High cost of repayment Loss of economic sovereignty

ECB European Central Bank Euro bank notes & coins ECB exclusive rights to authorise the issue of banknotes & holds gold & foreign reserves. Financial stability & supervision Supervision of credit institutions in EU Maintain price stability Monitors inflation & adjusts ECB interest rate Implements EU monetary policy Monitors & advises on interest, money supply, credit availabiltiy, Protects the value of the Euro.

Implications of IMF/EU support Orderly correction of balance of payments Promote exchange rate stability Lends to countries with large deficits, supports reform policies. Eg. Greece/Ireland Provides technical assistance & training Eg. When Soviet Union collapsed IMF helped with transition from CP to FE Avoid competitive devaluations. Eg. China v Japan Expansion of world trade Sound economic policies

World Bank Encourages investment funds to LDC’s Debt relief for LDC’s Extends loans or renegotiates interest rates Obtains funds from advanced countries to improve roads, schools. . Finances capital projects in member countries Eg. Community schools in Ireland LDC Least Developed Country Eg. Etheopia

Central Bank of Ireland Prints & issues legal tender Sole rights to mint notes & coins in Sandyfort. Banker’s bank • Lender of last resort: gives credit to banks with liquidity problems that cannot get funds elsewhere. • Clearing house for cheques. • Regulates the financial sector Bank to the government The gov has a current a/c in the Central Bank Provides consumer information/economic research Reports, statistics & publications