Abstract
The paper focuses on conditionality in IMF programs for member states of monetary unions in light of the decision of the IMF's Executive Board on Program Design in Currency Unions (2018). Despite the growing importance of supranational institutions, the IMF lacked until 2018 any explicit framework for imposing conditions on currency union bodies in cases where a member state of such a union requested an IMF program.
The aim of this paper is to assess the newly adopted IMF approach to conditionality for currency union institutions based on the concept of "policy assurances" and to answer the question of whether the IMF had authority to impose conditions on supranational institutions prior to the 2018 Board decision and whether it should in principle have such authority.