01802cas a2200253 a 4500 AALejournalIMF003020 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852431 1018-5941 BD-DhAAL BD-DhAAL Mourmouras, Alex. Conditional Lending Under Altruism / Alex Mourmouras, Peter Rangazas. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We analyze how the altruism of an international financial institution (IFI) towards its lowincome member countries (LICs) alters the effectiveness of its loans. We study IFI loans to a credit-constrained LIC. The IFI's repayment policy is determined by the interplay of its concerns for the welfare of the loan recipient and its fiduciary responsibilities to creditor countries. If the IFI is unable to commit to repayment terms in advance, conditional loans are superior to unconditional loans. Thus, IFI altruism and the inability to commit are sufficient reasons to equip loans with conditions. Conditional loans produce an efficient allocation of resources, so altruism is not a fundamental reason that loans fail to increase welfare. Mode of access: Internet Rangazas, Peter. IMF Working Papers; Working Paper ; No. 2004/100 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/100/001.2004.issue-100-en.xml IMF e-Library