Politics of IMF Lending in Times of Crisis: Greece and Argentina

The global economy has been subject to severe shocks due to successive crises in recent years (global financial crisis, COVID-19, war in Ukraine, etc.). In the context of crises of this scale, the role of International Financial Institutions (ΙFIs), such as the International Monetary Fund (IMF), is to ensure the proper functioning of the global economy by providing financial support to countries facing difficulties due to the impact of the crisis, while strengthening cooperation at the international and regional levels. One of the IMF's fundamental missions is to provide loans that are tailored to the countries’ different needs and specific circumstances, following the terms and rules of its Articles of Agreement. However, this study shows that recent cases, such as the euro zone and Argentina crisis, indicate that the Fund's lending policies are vulnerable to political and geopolitical influence. In addition, the review shows that lending with more lenient conditionality criteria is associated with the Fund's strongest shareholder countries, while more strict conditions are associated with developing and low- and middle-income countries. The study also attempts to demonstrate policies and arrangements within the Bretton Woods institution to limit its vulnerability to that influence in an era of de-globalisation, geo-economic fragmentation, and increasing international competition.