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209303
Sun, 09/25/2011 - 15:57
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https://oananews.org//node/209303
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IMF panel urges exceptional vigilance, decisive action on crisis
WASHINGTON, Sept. 24 Kyodo -
The policy-setting body of the International Monetary Fund on Saturday called on member economies to take ''exceptional vigilance'' against the deteriorating economy and agreed to ''act decisively'' to quell the crisis.
''The global economy has entered dangerous phase...We will therefore act collectively to restore confidence and financial stability, and rekindle global growth,'' the International Monetary and Financial Committee said in a statement released after its semiannual meeting.
The discussions on how to address the European financial problem dominated the IMF panel meeting as they did at the Group of 20 financial meeting on Friday.
Noting that the advanced economies are at the core of an effective resolution of current global stresses, the panel asked them to implement ''clear, credible, and specific measures to achieve fiscal consolidation.''
''Euro-area countries will do whatever is necessary to resolve the euro-area sovereign debt crisis and ensure financial stability of the euro area as a whole and its member states,'' the statement said.
IMF Managing Director Christine Lagarde emphasized the need of implementing a rescue package agreed on July 21 by eurozone leaders.
Asked if the July bailout plan is sufficient, Laragde told a press conference, ''I'm tempted to respond with one single word, implementation, implementation, implementation.''
''We are confident that implementation will follow,'' she added.
As for emerging economies, the IMF panel called for containing overheating of their economies and enhancing resilience in the face of volatile capital flows.
The statement also pressed emerging economies with current-account surpluses to continue to implement structural reforms to strengthen domestic demand through such means as achieving greater exchange rate flexibility.
Looking ahead, the panel urged the IMF to review the adequacy of its resources as one of the priority tasks and report to the next IMFC meeting in the U.S. capital in April 2012.
The request apparently reflects a sense of urgency among member economies that the Washington-based institution could face the need of hefty funds in the event of the greater contagion of the Greek debt crisis, a Japanese official said.
The statement also noted the importance of continued governance reform at the IMF and called for completing a comprehensive review of the quota formula by January 2013 and report on progress at the next spring gathering.
The ongoing reform on the IMF's quotas and voting shares are aimed at allowing greater representation of emerging economies in line with their growing clout in the global economy.
The panel also asked the IMF to study ''a more integrated, evenhanded, and effective surveillance framework'' to better capture risks to economic and financial stability, the statement said.
Following the IMFC meeting, the joint IMF-World Bank Development Committee also held a semiannual meeting later in the day to discuss ways to help reduce poverty by lifting economic growth in poor countries and job creation.
''Jobs are vital in translating growth into lasting poverty reduction and broad-based economic opportunities,'' the joint panel said in a statement, adding, ''We reiterate our commitment to job creation, especially by supporting the expansion of a vibrant private sector.''
2011-09-25 21:10:01
The policy-setting body of the International Monetary Fund on Saturday called on member economies to take ''exceptional vigilance'' against the deteriorating economy and agreed to ''act decisively'' to quell the crisis.
''The global economy has entered dangerous phase...We will therefore act collectively to restore confidence and financial stability, and rekindle global growth,'' the International Monetary and Financial Committee said in a statement released after its semiannual meeting.
The discussions on how to address the European financial problem dominated the IMF panel meeting as they did at the Group of 20 financial meeting on Friday.
Noting that the advanced economies are at the core of an effective resolution of current global stresses, the panel asked them to implement ''clear, credible, and specific measures to achieve fiscal consolidation.''
''Euro-area countries will do whatever is necessary to resolve the euro-area sovereign debt crisis and ensure financial stability of the euro area as a whole and its member states,'' the statement said.
IMF Managing Director Christine Lagarde emphasized the need of implementing a rescue package agreed on July 21 by eurozone leaders.
Asked if the July bailout plan is sufficient, Laragde told a press conference, ''I'm tempted to respond with one single word, implementation, implementation, implementation.''
''We are confident that implementation will follow,'' she added.
As for emerging economies, the IMF panel called for containing overheating of their economies and enhancing resilience in the face of volatile capital flows.
The statement also pressed emerging economies with current-account surpluses to continue to implement structural reforms to strengthen domestic demand through such means as achieving greater exchange rate flexibility.
Looking ahead, the panel urged the IMF to review the adequacy of its resources as one of the priority tasks and report to the next IMFC meeting in the U.S. capital in April 2012.
The request apparently reflects a sense of urgency among member economies that the Washington-based institution could face the need of hefty funds in the event of the greater contagion of the Greek debt crisis, a Japanese official said.
The statement also noted the importance of continued governance reform at the IMF and called for completing a comprehensive review of the quota formula by January 2013 and report on progress at the next spring gathering.
The ongoing reform on the IMF's quotas and voting shares are aimed at allowing greater representation of emerging economies in line with their growing clout in the global economy.
The panel also asked the IMF to study ''a more integrated, evenhanded, and effective surveillance framework'' to better capture risks to economic and financial stability, the statement said.
Following the IMFC meeting, the joint IMF-World Bank Development Committee also held a semiannual meeting later in the day to discuss ways to help reduce poverty by lifting economic growth in poor countries and job creation.
''Jobs are vital in translating growth into lasting poverty reduction and broad-based economic opportunities,'' the joint panel said in a statement, adding, ''We reiterate our commitment to job creation, especially by supporting the expansion of a vibrant private sector.''
2011-09-25 21:10:01
