Problem

You have been selected as the chief negotiator to represent your country, which is facing an economic crisis and must seek assistance from the IMF. You must draw up a draft version of a letter of intent and a secret document which will represent the bargaining position of your nation as negotiations open with the IMF. First, describe the economic conditions which have created a crisis for your nation. Second, explain the "policy actions" which will be undertaken by government to improve the functioning of the economy during the program period. Third, what "prior actions" is your government willing to undertake in order to obtain an IMF stand-by loan? How does your position differ from that which the IMF will probably present? How will you attempt to bargain with the IMF in order that your nation is adequately represented?