The IMF has recently completed a review of its lending facilities as a consequence of which it has implemented a number of reforms. By examining the Fund's basic functions, this paper offers a critical appraisal of these reforms. It is argued that more radical change is needed building on the liquidity and adjustment roles of the IMF. The reforms advocated here would reverse the proliferation of IMF lending facilities that is to be observed since the early 1960s. Copyright Blackwell Publishing Ltd 2003.