[brraverishhh]

Sometime, write off of loans to those countries will need the concurrent commitment by some other countries to write off their loans to these institutions. IMF does have a reserve of Gold but I doubt that it could keep writing off loans without getting some of its creditors to write off their loans to it as well.

Goh Meng Seng The fact is that the IMF doesn't routinely write off loans. It gets repaid more often than be forced to incur losses. A careful anaylsis of the Fund's accounts will be revealing. Therefore, the Fund has never required any of creditor nation to incur a loss. I would add that IMF pledges (of the kind that S'pore entered into) have very strict covenants that forbid the IMF from even suggesting that the creditor nation voluntarily forgive the loan.