Sunday, May 24, 2009

The lending reforms adopted will enable IMF to be even more flexible and responsive in assisting more countries.

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Taken together, these steps address the core problems – the stigma associated in the past with IMF conditionality, the availability of early pre-crisis financing, and the overall size of rescue packages – that have sometimes diminished the effectiveness of the Fund’s role as a crisis lender. Emerging markets that approach the IMF early on for pre-crisis financing will find shelter from the winds of global deleveraging, which in turn will help contain the spread of the crisis.

The IMF has already moved quickly to help many of our member countries in this time of crisis, including by protecting social spending in order to cushion the impact of the crisis on the most vulnerable. The lending reforms adopted will enable IMF to be even more flexible and responsive in assisting more countries.

At the same time, these reforms are only a part of a much larger plan for IMF renewal. Still in the pipeline are initiatives to increase concessional lending to low-income countries hit by the crisis, to strengthen the Fund’s surveillance and early warning capacity, and to improve its governance structure in ways that recognise the larger role of emerging-market countries in the world economy.


Dominique Strauss-Kahn


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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).

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