IIF's Dallara: IMF Must Be Funded, Reformed To Address Crisis
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- While some amount of risk appetite appears to be returning to global markets, the Institute of International Finance said Monday that the International Monetary Fund must be adequately funded and strengthened to deal with the financial crisis.
The financial industry group urged quick action in a letter to the head of the IMF's policy-steering committee, Youssef Boutros-Ghali, ahead of the spring meetings of the fund less than two weeks away.
Charles Dallara, IIF managing director, welcomed the pledges by Group of 20 leaders earlier this month to boost the funding for the IMF, but said he is concerned that getting the money in the fund's hands will take too long.
"The challenge now is to translate the broad commitments on policy and funding that were made at the G20 summit into reality, and to do so with considerable urgency, because I think we all know that the backdrop remains one of a deteriorating world economy," said Dallara at a press briefing.
Dallara noted some signs of stabilization, such as increasing risk appetite, but said economic data in advanced economies remains very weak.
The group also called for a strengthening of the IMF's surveillance capabilities to monitor global imbalances and financial markets and to help coordinate fiscal, monetary and currency policies.
"Nothing short of the transformation of the IMF is called for if these resources are to be effectively used, and importantly, if we're to develop the kind of framework for the world economy that can mitigate the potential that we will repeat the disastrous situation we have in front of us today," said Dallara.
-By Tom Barkley, Dow Jones Newswires; 202-862-9255; tom.barkley@dowjones.com
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Publié le 13 Avril 2009 Copyright © 2009 Dowjones
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