Which international financial institution, founded in 1944, provides short-term loans for balance of payments problems?

The International Monetary Fund provides short-term balance-of-payments assistance and was founded in 1944.

The IMF was conceived at the Bretton Woods Conference in New Hampshire, held in July 1944 while World War II was still underway. Delegates from 44 Allied countries sought to prevent a repeat of the competitive devaluations, trade barriers, and monetary instability associated with the Great Depression.

The Fund’s original role was to support a system of fixed but adjustable exchange rates centered on the U.S. dollar and gold. Countries contributed through quotas and could draw on shared resources when they temporarily lacked enough foreign currency to meet external payments. The IMF formally began operations in 1945.

Balance-of-payments trouble occurs when a country’s international payments exceed its foreign-exchange earnings or reserves. The IMF is often confused with the World Bank: the IMF focuses primarily on monetary stability and crisis financing, while the World Bank traditionally emphasizes long-term development and reconstruction projects.