Write down the Ukrainian equivalents.

Articles of Agreement

International Monetary Fund

The General Agreement on Tariffs and Trade (GATT)

The Organization for Economic Cooperation and Development (OECD)

The Bank for International Settlements (BIS)

The United Nations Conference on Trade and Development (UNCTAD)

The World Bank Group

Find and read sentences explaining the title of the text.

 

Find in the text sentences expressing such ideas.

1. The international monetary developments affect the lives of all people.

2. The international monetary system touches a lot of problems.

3. The international monetary system works according to the rules.

4. The reason of monetary system problems is in the politically independence of nations and in the same time in their economically and financially interdependency.

5. The international monetary system is concerned with three main problems.

 

14. Checking facts and ideas using such expressions: Exactly; Right you are; I agree with you; That goes without saying; There’s no denying it; No doubt whatever; I can’t agree with you; I’m against it; You are mistaken; Hardly.

1. The international monetary system influences only on the lives of businessmen.

2. Employment opportunities for workers depend on the economical situation in their country and have no any connection with the international monetary system.

3. Business activity is heavily influenced by international monetary system.

4. The international system is concerned only with the supply of international money.

5. International monetary relations are governed by rules.

6. The international monetary system is not afflicted with problems.

7. The problem how nations settle their accounts with one another is not the problem of the international monetary system.

8. The international monetary system involves the management of three processes.

 

Divide the text into logical group and give them titles.

 

Single out the main points of the text. Use the following opening phrases.

The text looks at (the problem of…)

The text deals with the issue of..

It is clear from the text that…

Among other things the text raises the issue of…

The problem of…is of great importance

One of the main points to be singled out is

Great importance is also attached to…

In this connection, I’d like to say…

It further says that…

I find the question of…very important because…

We shouldn’t forget that…

I think that…should be mentioned here as a very important…mechanism of….

Grammar Exercises

 

1. a) Supply the articles where necessary.

b) Write down 3-5 questions about the text.

c) Describe the purposes for which the IMF was set up.

 

The International Monetary Fund

The International Monetary Fund, an association of governments was set up on 27th December, 1945, as a result of the Bretton Woods Agreements which were designed to translate the bitter lessons of global depression into... stable and cooperative international monetary system. The organizational structure of the IMF is set out in its Articles of Agreement, which entered into... force in December 1945. The goals of... IMF are to promote international monetary co­operation through a permanent institution; to facilitate the expansion and balanced growth of international trade; to promote exchange stability; to assist in the establishment of a multilateral system of payments in respect of current transactions between members; and to provide members with an opportunity to correct maladjustments in their balance of payments without resorting to measures destructive to national and international prosperity.

Over many years the IMF has been directly involved in supporting... efforts of developing countries to pursue broad structural reforms and achieve sustainable growth. As of August 1, 1994, 179 countries were members of the IMF. Each member government has been set... quota to be paid into the Fund, payable partly in... gold and partly in the member's own currency; the quota determines the member's voting power and... amount of foreign exchange that it may draw from the Fund. A member may purchase foreign exchange, paying its own currency, but... member must "repurchase" its own currency within three or, at the outside, five years to maintain the balance in the Fund pool. Currencies drawn from the Fund may be used to relieve... member's balance-of-payments difficulties; the funds may not be used for military purposes or for programmes of economic development. The aim is to assure... maintenance of fixed exchange rates in the face of short-term fluctuations. Many countries have been helped in this way. Each member undertakes to establish and maintain an agreed par value for its currency, and to consult the Fund on any change in... initial parity. In addition, the Fund consults with members on their international financial situation and on specific problems as they arise. On request, the Fund furnishes expert missions to advise and assist... governments in working out monetary problems on the spot. In any event, members are kept informed of... latest developments. Policies are laid down by a Board of Governors, representing all members, which normally meet annually. Many of its powers are delegated to a Board of Executive Directors. In recent years, the resources of the Fund have been supplemented by resources of... Group of Ten.

Words you may need:

to be designed бути призначеним

to enter into force вступати в силу

balanced збалансований

multilateral system багатостороння система

in respect of в відношенні

to correct maladjustments виправляти диспропорції

resort (to) v удаватися до

structural reforms структурні реформи

voting power голоси в органах, які керують

purchase v купувати

to maintain the balance підтримувати баланс

 

2. Prepare the short talk on the following:

1. In what way are individuals affected by international monetary developments?

2. Relations between Ukraine and international institutions such as GATT, OECD, BIS, UNCTAD, IMF. In what ways do countries benefit from the membership in these organizations?

3. Your opinion on Ukraine’s borrowings from the IMF. Is it the only way to cover the budget deficit?

 

Unit 14

 

bond market ринок облігацій

maturity строк боргового зобов’язання

to back гарантувати, давати поручительство

to deal (in) торгувати

to debt financing фінансування шляхом отримування позики

equity financing мобілізація капіталу за допомогою випуску акцій

share доля

debtor боржник

lender кредитор

to underwrite гарантувати розміщення цінних паперів

hard-currency market ринок твердої валюти

short-term securities короткострокові цінні папери

to issue stock випускати акції

to trade проводити угоди на ринку цінних паперів