When a country borrows from the IMF, its government agrees to adjust its economic policies to overcome the problems that led it to seek financial aid. ... This system of conditionality is designed to promote national ownership of strong and effective policies.

Why does the IMF impose conditionality on countries except its loans?

Why does the IMF impose conditionality on countries that accept its loans? The IMF wants to help fix the economies of countries that need its help.

What is the conditionality clause of IMF?

The IMF fact sheet on conditionality states: “Conditionality is a way for the IMF to monitor that its loan is being used effectively in resolving the borrower's economic difficulties, so that the country will be able to repay promptly, and make the funds available to other members in need.” IMF (2005).